Dubai properties would still yield a profit

Investors who purchased property in Dubai as recently as 2007 could still make a profit if they opted to sell their homes in Dubai, despite the ongoing economic crisis and Dubai property downturn, says the head of one Dubai housebuilder.

Laura Martorano, CEO of Leo Sterling, told Emirates Business that people who bought property in Dubai at the peak of the market last year are likely to find themselves in negative equity right now.

“People who are suffering the most are those who bought properties last year on a mortgage because prices were extremely high and mortgage [rates] were high as well,” she said. "But people who bought before 2007 have not lost. Even if they sell they will still make a profit.”

Martorano said that the recent Dubai World debt restructuring talks had little impact on Dubai property prices.

She added: “Prices in a ready market will not change much because there is competition. In a ready market, about 60% of the purchases are cash purchases. Therefore, these people may not necessarily be so desperate as opposed to the 40% who have mortgages and bank loans.”

Data from Dubai Land Department show that Dubai property transactions fell in November, compared to the previous month.