The residential property market in Dubai appears to have bottomed out, according to research by Jones Lang LaSalle.
Data show that prices are currently at rates similar to early 2008 levels, although they still remain off peaks reached in the the third quarter of 2008, the property consultancy said in its first quarter report on the Dubai market.
"Despite seeing a sharp fall from its peak levels in the third quarter of 2008, the villa market began to see some uptick towards the end of 2011 and this trend has continued into 2012 with sale indices now 3 per cent higher than in January 2008," Jones Lang LaSalle said.
"Villa sale indices are still 25 per cent lower than at their peak in the third quarter of 2008. Apartment sale indices have also begun to stabilise but remain at lower levels, 34 per cent down on the peak in the third quarter 2008."
Jones Lang LaSalle based its analysis on property price indices from REIDIN.com.
Jones Lang LaSalle said the general trend across the rental market was also positive. The rent indices from REIDIN.com show that rents for villas are 5 per cent higher than 2009 levels, but apartment rents are still up to 30 per cent lower.
"The villa market is expected to continue to outperform the apartment sector and whilst prime residential assets in well established locations continue to see improved performance, secondary buildings and locations are still suffering from rental and pricing declines," Jones Lang LaSalle said.