More luxurious houses, particularly investments in villas, could be best protected against price falls in the UAE, consultants have indicated.
Only developers delivering “on the quality they promised” will be rewarded when it comes to profit from real estate sales, says Landmark Advisory.
The property group delivered the warning as calls grow for Dubai to push through planned rules protecting investors who have bought properties off plan.
Investors who have bought houses and apartments want approval of new laws connecting payments to construction progress.
Landmark Advisory also said any recovery in the UAE real estate market will be determined by the availability of credit.
Daniel Seleanu, research analyst with the firm, said: “As the price discovery process unfolds, we expect sale prices to fall on average by 20 per cent for apartments and 35 per cent for offices. Villa prices, however, are likely to remain fairly stable.”
Houses currently under construction as part of villa-style developments include units in Jehan, Jumeirah Village, selling at $386,089. Elsewhere houses in Sahara Meadows 2, Dubai Industrial City, are going at $507,258.
Further afield some real estate developers have taken to the web to keep buyers updated on the delivery and quality of their investments.
Real estate firm Hircon is now running online construction picture updates of its prestigious 23 Marina development in Dubai.
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