Dubai market gets active

Dubai's property market is set to see an increase in activity when liquidity returns to the sector, one report has forecast...

According to Business 24-7, a study by HSBC Holding has suggested that buyer confidence will return once finance becomes easier to obtain.

The survey indicated a fall in real estate prices in Dubai during the last month of 2008, with values dropping 23 per cent on average, resulting in apartment prices being 20 per cent lower than their peak value in September of last year.

However, the study also noted that sales volumes have increased during the start of 2009, with 1,782 transactions being recorded for the first two weeks of January.

And HSBC Holding's research revealed that over 5,800 transactions took place in the fourth quarter of 208 - a 226 per cent year-on-year increase.

In related news in the emirate, it was recently claimed that renting property in Dubai is likely to become more expensive over the coming months, despite a decree from ruler Sheikh Mohammed bin Rashid Al Maktoum freezing rents for those tenants that renewed contracts last year.

Source: HSBC