September 7, 2009

Property in the UAE showed further signs of recovery on Monday after transaction volumes in June and July reached levels of the third quarter last year, a new report published on Monday found.

End-users remain the dominant buyers of freehold property in Abu Dhabi, but investors continue to make up the bulk of demand in Dubai, real estate adviser Landmark Advisory said in its August sales guide.

“Sales in both emirates during June and July 2009 have been the most active since Q3/Q4 2008, with the majority of transactions in Abu Dhabi focusing on nearly completed developments, while market prices in Dubai are stabilising in preferred locations and for specific unit types,” the report said.

In Abu Dhabi, which has weathered the property downturn better than neighbouring Dubai, apartment prices have fallen 10 percent to 15 percent in the last four months, the report said.

Villa prices in the UAE capital are stabilising, after dropping 45 percent since the third quarter last year, the report added.

Some properties in Abu Dhbai's Al Reem Island and in the Arabian district of Al Reef Villas have increased between five percent and 10 percent in the last few months.

The outlook for Dubai is less positive, Landmark said. Falling rents in the long term could drag down sale prices, which are currently stable.

Demand for one and two bedroom apartments in Dubai was found to be strongest both in the sales and leasing market, the report said.

Source : Arabian Business