Cautious optimism in the Dubai property market.

 

A report out yesterday from Standard Chartered has stated that the Dubai property market has started to show signs of bottoming out in recent months. The report goes on to say that although the signs are encouraging, further short term price reductions cannot be ruled out. In particular, factors such as the traditional summer lull in the real estate sector, and the end of the school year, are expected to have a short term impact on prices of property in the emirate.

 

Analyst Philippe Dauba-Pantanacce went on to say "After a fall of 30 to 40% the first signs of stabilisation in Dubai's real estate sector have appeared, taking observers by surprise since further declines were expected."

 

The tone of cautious optimisation seems to be reflected throughout Dubai's real estate industry at the moment, with many people encouraged by the long term opportunities presented by the recent correction in property prices in the emirate. Other factors such as the increased loan to value amounts being agreed by the major financial institutions are also adding to the more optimistic sentiment throughout the Dubai property industry at present.

 

Peter Riddoch, Chief Executive of DAMAC Properties said "Some property companies are confident that the worst could be over and are reporting renewed interest among overseas investors. The market is showing early signs of bottoming out. However, it is too early to be absolutely sure."

 

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