Monday, January 26, 2009

Dubai property rates to decrease

According to industry analysts, Dubai house prices are likely to lessen in 2010. The prices may start decreasing from next year itself; it would be a considerable difference which may not be noticed.

According to analysis and reports it has been predicted that the demand-supply situation in Abu Dhabi Property will start balancing by 2010.

Appreciation of 40.8 percent has been noticed in the real estate price index in Dubai in residential sector, while the prices in commercial sector have increased by 42.7 percent during the same period.

During June 2007, the average rent rate in Dubai was Dh.1, 291 per Square Foot, while in June 2008 it was Dh.1, 818, marking one year increase of 40%.

Dubai residential prices rate increased during the past five years, the price has been of topmost concern. Locations such as the Barsha and Jumeirah Lake Towers have seen maximum increase in prices.

As people would prefer to live close to station, places adjacent to Dubai Metro are also expensive. In June 2007, the commercial property rates were Dh.1444 per square foot while in June 2008 it was Dh.2060, i.e. 42.7 percent of increase.

The rents would still continue to increase for next one year. Due to increase in the cost of materials, developers have been compelled to slow down there development plans, as this is causing delays in the market.

Fujairah Property which were likely to be finished by 2009-10, have now been extended to 2011-12. Analysts predict that Dubai property prices might reach the peak during later half of 2008.

By: estherchristian

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