Price correction possible for Dubai real estate market

November 19, 2008 by OPPE News

Dubai’s real estate market could see a price correction followed by a rise in transactions, property developers have said.

The emirate has seen a wobble in market confidence following reports values have stabilised and demand has slowed.

Last week one of the biggest builders in the middle east, Emaar, introduced a new payment plan for buyers of its property in order to spark fresh demand.

Ryan Mahoney, managing director of real estate firm Better Homes, has said prices could fall followed by a bounce back period.

Quoted by Gulf News, he said:

“I’m doubtful whether transactions will rise to previous levels in the next six months. But people will have a sense of prices falling.

“Then they will stop falling and start to grow again. It may take more than a year.”

According to the site, Mr Mahoney said the number of deals completed in November is similar to the number which went through in January, before the collapse of financial markets and the arrival of a global lending squeeze.

Gulf News also reported a survey of more than 170 Dubai estate agents, with around 77 of those questioned believing the current problems faced by the Dubai real estate market would be solved in six months.