Are Dubai property prices set to rise?

Country:  Dubai, United Arab Emirates

7 August 2009

Dubai property experts project that property values in the emirate could be set to rise in the foreseeable future, thanks to increased demand for property in Dubai, and the introduction of less stringent mortgage lending conditions, according to Emirates Business 24/7.

Affordability has improved, following a collapse in Dubai property prices since the second half of last year. A Colliers International report out this week says that residential values have fallen by over 50% in the emirate since Q3 last year.

However, stringent mortgage borrowing conditions, combined with a slump in the global economy, has caused a fall in demand for properties in Dubai, as well as other parts of the world, although that is now starting to change, says Mohanad Al Wadiya, managing director of Harbor Real Estate Brokerage.

“We will see a much improved level of activity in the later part of this year as,” Al Wadiya told the press. “Dubai relaunches itself as a preferred place to do commerce and trade.”

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