Find out what’s happening in the property investment arena both in the UK and internationally
Dubai Looking Less Likely To Die
January 25, 2010Article by Ray Withers
According to a new report by Asteco, one of the largest property management companies in the Emirates, prices of property in Dubai stabilised towards the end of 2009, with no movement in prices between the third and fourth quarters.
That is not particularly a big story, given that Colliers international reported a 7% increase in prices of property in Dubai in the third quarter. However, the additional information given by Asteco potentially makes it massive.
The report says:
“Palm Jumeirah fared best as it was able to hold values, the company said.”Lifestyle communities are weathering the storm and the Palm Jumeirah is an iconic development and, with continuous improvement of infrastructure and completion of residential and hotel developments, has become a sought-after destination,” said Asteco CEO Elaine Jones.
“Other areas identified by Asteco as continuing to generate interest throughout 2009 include Downtown Burj Dubai, Dubai Marina, Jumeirah Beach Residence, Springs and Arabian Ranches as they offer lifestyle communities with easy access to retail, leisure, education and entertainment.”
The fact that it is the touristic areas that are seeing the best sales activity jibes with reports from last year. One report said that Dubai must reinvent itself, and market properties on the benefits Dubai originally set out with; in other words: market property in Dubai to tourists and not just speculative investors in order to turn the market around.
Other reports told of air traffic to Dubai increasing, which seemed to suggest that tourism to the emirate had not suffered the same fate as the property sector.
Potentially this is huge. It could mean that all the massively pessimistic reports into the future of property in Dubai could be overblown by a long way.
Another detailed research report into Dubai last year concluded that for Dubai property to ever see revival the country must focus on achieving diversity in the economy, bringing up the Small to medium sized enterprises and making the emirate once again an attractive place to come and live and work.
Undoubtedly a revival in the tourism industry could therefore benefit the property market in two ways, a: by generating sales of its own (as the Asteco report would seem to indicate that it is already) and b: by adding more diversity to the economy and attracting people from abroad to come and work.
If the prestigious Palm Jumeirah is bringing in the crowds and helping to sell property in Dubai again, then imagine what the new kid on the block Burj Dubai, the tallest skyscraper in the world could do.
Next: Jonathan’s Market Round Up »