Estate agents say a willingness to transact appears to be returning, signalling prices have not much further to fall.
Brokers see bottom of Dubai property market
Property prices appear to be bottoming out in Dubai, brokers say, citing the increase in transactions in February that they say shows buyers are returning to the market. Prices have fallen substantially since the end of last year, by as much as 50 per cent in some developments. The cost of flats in Palm Jumeirah have dropped to Dh1,000 a square foot from a high of Dh2,000 a square foot in July last year.
"Our transactions have increased by 15 per cent in Feb 2009 compared to Jan 2009," said Liz O'Connor, director of residential sales and leasing at Better Homes. In the Dubai Marina, where prices have also fallen by around 50 per cent, transactions also appear to be picking up. "In Dubai Marina you would probably see prices in the region of Dh900 to Dh1,100 per square foot," Iseeb Rehman, Managing director at Sherwoods said. "I think we are getting close to the bottom now. There are people more willing to transact at that level."
A large agency, which declined to be named, said had closed only 9 deals in February, compared to up to 130 during the hey days of the property boom. This was however an improvement on January, during which the agency closed four transactions. firstname.lastname@example.org