Dubai property market enjoys stability after increased demand

Posted on: June 17, 2011

Written by Max Bielby

A recent report created by Nomura has highlighted the improving performance of Dubai’s real-estate sector.

“We think there are signs of price stabilisation across the residential market, with the recovery in Dubai (in selected areas) stronger than Abu Dhabi.” the report stated.

The report’s author Chet Riley added

“In the past two months, we find some positive momentum in the market – but this is prior to the traditionally slow summer season. We expect residential prices to ‘hold’ rather than ‘fold‘over the next six months.”

This is excellent news for Dubai’s property market and those who have invested in it. Nomura’s opinion is shared with Jones Lang LaSalle who reported earlier in the month that real-estate supply in Dubai had peaked, ushering a new era of price stability for the emirate.

The view from the ground has added to the optimism with industry experts reporting increased enquiries and transactions across the board. A strong level of interest has emerged domestically as well as from the wider MENA region. As well local investors, Dubai is now receiving increasing numbers of Indian, Russian, Chinese and British buyers now entering the market with renewed interest.

This report comes in conjunction with an article by Bloomberg reporting that one arm of the previous debt stricken Dubai World has announced they will be restarting business now demand has picked up. The head of projects for Dubai World’s Limitless said,

“Hopefully, we can start on the residential side in early 2012 because there is good demand for it,”