UAE | Housing & Property

Realty poised to ride out market storm

Inflated prices of properties on the Palm Jumeirah have fallen 40 per cent as the number of 'distress sale' e-mails have begun to increase, real estate brokers said.

  • Gulf News Report
  • Published: 23:35 November 20, 2008
  • Gulf News

Dubai: Inflated prices of properties on the Palm Jumeirah have fallen 40 per cent as the number of 'distress sale' e-mails have begun to increase, real estate brokers said.

However, the villas and apartments are still selling at prices higher than the original prices.

"There is a sizeable increase in the number of property owners in an urgent state to sell," Robert Macnair, sales dir-ector of Dubai-based Elysian Real Estate, said on Thursday.

"It could be that they have a large payment coming up or they've seen the market dropping over the last month ... there is a real sense of urgency."

Abid Junaid, executive director of property developer ETA Star, said, "The current downturn is a reflection that the market is correcting itself, which is a good thing as the prices are going to come to a more realistic level." However, mortgage lender Amlak's announcement that it is temporarily halting new mortgages is rubbing salt in the wound.

"This could be counterproductive, as this is the time to channel more funds into mortgages so that the end-users can buy," Junaid said.

While some analysts believe that it is not a reflection of the sliding property market, others are confident that it is a temporary condition, soon to be resolved.

Prospective homeowner Joe D'Costa told Gulf News that the news would not deter him from investing in a new home for his family.

  • Rate this article
  • Average reader rating (0 votes) 0 Stars
Tools

Emailing an article to friend is a simple way to share a news item. Your friend will receive an email with your name and email address as well any personal message you choose to send.

The information you provide on this page will not be used to send unsolicited emails.

This service is not intended to encourage spam, and action may be taken against individuals who maliciously enter personal details of another individual.

Share this article

More from UAE Housing & Property

  1. Abu Dhabi tenancy contract period extended

  2. JLT owners waiting for homes promised in '07

  3. Abu Dhabi residential city on track

  4. No hike in water and electricity rates in Dubai

All articles in Housing & Property

More from UAE

Gulf News
Popular in UAE
Readers' pictures
Your pictures

Readers' pictures

A Selection of the best Gulf News reader pictures this week

Latest news
UAE Editor's choice