The picture shown above is the Atlantis Dubai, a great example of Dubai’s property bubble that has recently collapsed. But has the property collapse in Dubai ended?
AME and the National newspaper in the UAE hinted that the Dubai property market, which we have reported as having crashed over the past few months, may show signs of being at the bottom of its fast decline. They cite property agents who are seeing an uptick of 15% in property transactions in February 2009. They also cite that property values in Dubai marina have cratered 50% from their high points.
But have property values really stopped falling for good?
It seems doubtful because…
- Dubai has been building exorbitant number of properties over the past few years. Without jobs and without recoveries in other Middle Eastern and European countries, how can Dubai generate demand in its property?
- Who would buy and with what money? Abu Dhabi is flush with cash, but will employees in the private sector have cash to invest in properties in Dubai? Will Europeans flock to Dubai amidst economic instability?
- And given the fact that projects are being cancelled in Dubai, it seems too rosy a picture to say that the Dubai property market has hit bottom.
SIS International Market Research – Dubai Market Research – Construction and real state research in dubai