Thursday 3 May 2012

Signs of UAE real estate recovery still tentative; worst likely over for property sector

A bounce in the earnings and share prices of some United Arab Emirates real estate developers suggests the worst is over for the sector, but does not indicate a full-fledged recovery because property buyers remain very cautious, analysts say.

Property prices in Dubai fell 50 percent or more in the last several years, hit by the global financial crisis and the emirate’s own corporate debt problems. But a new report by consultants Jones Lang LaSalle said Dubai saw pockets of growth in residential housing prices in the first quarter of 2012 compared to a year ago, while office rents were bottoming out.

The sector is being boosted by population growth -- as Dubai’s economy grows, some of the workers who left during the depths of the 2009/10 corporate debt crisis appear to be returning -- and by a strong tourism industry.

1 comment:

  1. Its a fact that the economic status affects on property market and vice versa. The last World Credit Crisis 2008 has a bad effect on all economical fields specially in real estates, and the development of property market contributes in the recovery and growth of the economic all over the world .

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