Dubai housing market to stabilise in 2010

Many Dubai property agents generally expect the Dubai housing market to stabilise next year, as a growing number of potential buyers recognise the long-term property investment opportunities emerging in the emirate.

Mohanad Alwadiya, managing director, Harbor Real Estate, commented: “Prices across villas and apartments will stabilise in 2010. Moreover, buyers investing in residences in Dubai will enter on a long-term basis, indicating a less speculative interest in the emirate for next year.

The Dubai property market has experienced a pretty rough 2009, with a number of residential schemes across the emirate either being scrapped or suspended, due to a dramatic fall in demand for homes in Dubai.

There was a sign that the Dubai housing market was recovering, after statistics for the third quarter showed that real estate transactions and prices had improved markedly.

However, the state has since run into further trouble, after Dubai property developer, Nakheel, made a request to suspend its debt on the Palm Jumeirah property scheme and other neighbouring developments in the emirate.

The news shook credit markets around the globe and led to fresh doubts over whether Dubai would be able to meet its obligations, leaving many residential projects uncompleted.
However, many international real estate investors are now starting to cast an eye on Dubai once more, with bargains potentially emerging, following a spectacular crash in property prices since the peak of late 2008.