Dubai rental lease transactions rise as market seeks bottom
07 June 2009
HSBC's property market survey has found that agreed prices in April rose by 4%, and by a further 5% in May.
Though the bank highlights the increase, the May figures are still 23% below the September 2008 peak level.
“Our market testing confirms that prices have indeed started to stabilize due to renewed interest as well as some sellers re-pricing, pulling their properties off the market, or putting them up for lease,” says the report. “Foreign investors also seem to be back in the market and the majority of transactions are being conducted in cash.”
The turnaround is attributed to the fact that prices are coming off a very low base, that liquidity is beginning to return, that yields remain attractive, and that sentiment in the market is improving. However, the report underlines that it is only apartment prices that have begun to increase - villa prices are down a further 11% month on month.