Dubai property sales and rental rates stabilise

Dubai property sale and rental prices are stabilising, according to two new reports published this week.

Whilst the majority of 2009 saw the Dubai property market endure the effects of the global downturn, reviews by Asteco and HC Securities both provide evidence of a turnaround in the last two months of the year, indicating a state of equilibrium being reached in the sector.

Asteco reported a slowing of rental rate decline in the final quarter of 2009, with HC Securities noting month-on-month rental gains of two and one per cent in November and December respectively.

According to Asteco, there was consistent activity in the 2009 residential rental market and the agency advised that property owners with quality units in prominent locations would benefit from further interest.

Such locations include Dubai Marina, where, according to Asteco, property rentals proved particularly popular last year and will continue to remain attractive in 2010 with units here representing good value for money and offering “lifestyle communities with easy access to retail, leisure, education and entertainment.”

Meanwhile, Asteco’s report also indicated a steadying of sale prices of Dubai apartments and villas in complete developments towards the end of 2009 with no change observed between the third and fourth quarters.

The report also revealed an increase in transaction activity in the back end of 2009 in line with economic recovery and an increase of mortgage availability.

The findings of these two reports should provide confidence to investors in the Dubai property market, especially those in prime locations that are set to continue to generate interest in 2010.

Source: Emirates Business 24/7