Dubai rents to stabilise

26/01/2010 - Dubai Property News
Dubai rents to stabilise
Posted by Ashley Waterman

Dubai's residential sector is set to stabilise by the end of this year, according to a new property report.

The research, from Jones Lang LaSalle, shows that while average house prices and rents will decrease slightly initially, the sector will bounce back in the medium-term.

According to LaSalle, the market's performance will vary from location to location and be driven by local demand rather than supply issues.

"Prices seem to have stabilised over recent months, despite the existing over-supply situation," Blair Hagkull, the managing director of Jones Lang LaSalle Mena, told Kipp Report.

"Stabilization of transactional volumes is another positive indicator of investor confidence but the lack of housing finance remains a major challenge in Dubai," he claimed.

Mr Hagkull added that an improved lending scenario is one of the key factors for sustainable growth.

Meanwhile, a recent survey by GRMC Advisory Services showed that the recent economic unrest has not affected people's property investment decisions in the region.ADNFCR-2019-ID-19579081-ADNFCR