Dubai real estate prices expected to rise

Dubai: The future of real estate in Dubai is sunny, with most real estate agents predicting the market will pick up in the next six months.

"If we look at other markets, as the availability of financial lending changed, there was a slow period for a couple of months and then the market improved in terms of transactions," Ryan Mahoney, managing director of Better Homes, said.

Mahoney said the number of transactions for November is consistent with the number of transactions recorded in January, well before the arrival of the unwelcome crunch.

"I'm doubtful whether transactions will rise to previous levels in the next six months. But people will have a sense of prices falling. Then they will stop falling and start to grow again. It may take more than a year," Mahoney said.

UAE Lists comment: First – prices in the other countries hit by the financial crises have not started to rise yet. The prices there has gone down for 1 to 2 years straight. The UAE market will not start to react in upward trend before the "”major” property markets have reacted in upwards trend. A rise requires people to get more money in their hands so they will once again invest in a 2nd or 3rd home. Second – how many of the transactions are actually “old” contracts being registered so you a property owner can attempt to sell the property? Since you can’t sell your property without registering it first, this distorts the figures. To get the real numbers Land Department should make the list based on initial contract date – and not on Land Department registration date.  From what we have seen “old” contracts is actually the majority – more than 90-95%. 

Gulfnews: Dubai real estate prices expected to rise

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