Dubai home prices are likely to remain flat this year, although some areas could see further falls of as much as 30 per cent, says the property consultancy Jones Lang LaSalle (JLL).
Prices in the emirate surged in 2008 as speculators bought and sold off-plan homes, sending prices up by 43 per cent in the first three months of that year.
Those increases have since been erased, with overall prices down by more than 50 per cent from their peak in the third quarter of 2008.
Blair Hagkull, the JLL managing director for the MENA region, said that while prices in established communities of Dubai would remain flat, there could be a further fall of between 15 and 30 per cent for homes in developments that still needed to be connected to utilities and other amenities.
"But to lead with that headline is very much a misnomer for what's happening in the marketplace; the rate of decline has reduced," Mr Hagkull said.
He added that as the market matured price changes were becoming more complex.
A glut of homes in Dubai would further suppress prices as the prolonged slowdown dampened demand, other analysts predicted. Colliers International said the number of new homes in the emirate was expected to grow by more than 34,000 in the next two years.
Meanwhile, Landmark Advisory estimated that about 2.97 million square metres of new office space would have reached the market by the end of next year, compared with 3.25 million sq metres available today.
The oversupply would be more attractive for tenants as rental rates came down further and landlords offered easier payment terms, Mr Hagkull said.
Despite the oversupply, there was still a shortage of "A grade" commercial and residential property, he added. "The reality is, we have investors today who are looking for investment grade property like they would find in North America, Asia or Europe," he said.
"There's a lot of supply [in Dubai], but little that meets investment grade criteria, particularly property that is freehold and available to international purchasers."
JLL has forecast that as the market matures, developers will start to build "real homes for real people" as they devise longer-term business plans and move away from the "luxury" home model that dominated the market during the boom and mostly appealed to speculators.
There would also be a marked shift away from creating new developments to trying to create value out of existing assets, the firm said.
Meanwhile, regional investors will play a greater role in Dubai's property market, JLL predicts.
Last year, investors from the Middle East ploughed Dh3.7 billion (US$1bn) into London's property market as they took advantage of lower prices and a favourable exchange rate.
"A lot of global money is going back to its home markets," Mr Hagkull said.
* additional reporting by Angela Giuffrida
@Email:rbundhun@thenational.ae
UAE v Zimbabwe A, 50 over series
Fixtures
Thursday, Nov 9 - 9.30am, ICC Academy, Dubai
Saturday, Nov 11 – 9.30am, ICC Academy, Dubai
Monday, Nov 13 – 2pm, Dubai International Stadium
Thursday, Nov 16 – 2pm, ICC Academy, Dubai
Saturday, Nov 18 – 9.30am, ICC Academy, Dubai
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
RACE CARD
4pm Al Bastakiya – Listed (TB) $150,000 (Dirt) 1,900m
4.35pm Dubai City Of Gold – Group 2 (TB) $228,000 (Turf) 2,410m
5.10pm Mahab Al Shimaal – Group 3 (TB) $228,000 (D) 1,200m
5.45pm Burj Nahaar – Group 3 (TB) $228,000 (D) 1,600m
6.20pm Jebel Hatta – Group 1 (TB) $260,000 (T) 1,800m
6.55pm Al Maktoum Challenge Round-1 – Group 1 (TB) $390,000 (D) 2,000m
7.30pm Nad Al Sheba – Group 3 (TB) $228,000 (T) 1,200m
MATCH INFO
English Premiership semi-finals
Saracens 57
Wasps 33
Exeter Chiefs 36
Newcastle Falcons 5
Ultra processed foods
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;
- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,
- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.
The biog
Age: 35
Inspiration: Wife and kids
Favourite book: Changes all the time but my new favourite is Thinking, Fast and Slow by Daniel Kahneman
Best Travel Destination: Bora Bora , French Polynesia
Favourite run: Jabel Hafeet, I also enjoy running the 30km loop in Al Wathba cycling track
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
THE BIO
Age: 30
Favourite book: The Power of Habit
Favourite quote: "The world is full of good people, if you cannot find one, be one"
Favourite exercise: The snatch
Favourite colour: Blue
LIVING IN...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
MATCH INFO
Uefa Champions League, last 16, first leg
Tottenham Hotspur v Borussia Dortmund, midnight (Thursday), BeIN Sports
Seven tips from Emirates NBD
1. Never respond to e-mails, calls or messages asking for account, card or internet banking details
2. Never store a card PIN (personal identification number) in your mobile or in your wallet
3. Ensure online shopping websites are secure and verified before providing card details
4. Change passwords periodically as a precautionary measure
5. Never share authentication data such as passwords, card PINs and OTPs (one-time passwords) with third parties
6. Track bank notifications regarding transaction discrepancies
7. Report lost or stolen debit and credit cards immediately
AUSTRALIA SQUADS
ODI squad: Aaron Finch (captain), Ashton Agar, Alex Carey, Pat Cummins, Josh Hazlewood, Marnus Labuschagne, Mitchell Marsh, Glenn Maxwell, Kane Richardson, Steve Smith, Mitchell Starc, Matthew Wade, David Warner, Adam Zampa
Twenty20 squad: Aaron Finch (captain), Sean Abbott, Ashton Agar, Alex Carey, Pat Cummins, Mitchell Marsh, Glenn Maxwell, Jhye Richardson, Kane Richardson, Steve Smith, Mitchell Starc, Matthew Wade, David Warner, Adam Zampa
If you go...
Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).
