Nearly there

As reports start coming in that property prices are beginning to rise, developers and realty agents are speculating whether the market has indeed bottomed out. Among these is Hesham Elfar, CEO of Coldwell Banker UAE, who says that while the bottom of the market is hard to determine, "One thing is for sure, if we have not reached the bottom, we are very close to the bottom."

Hesham predicts there will be a further dip in prices before things improve. "In the next six months, villa prices should remain stable while apartments might see a drop of 5-7 per cent due to excess supply expected in the coming months. With commercial properties we are expecting a downtrend in prices, also due to upcoming supply."

As Dubai shows tentative signs of recovery, players in the industry mustn't become too complacent. Hesham believes much needs to be done before Dubai can bounce back. "Firstly, the residence visa issue should be re-evaluated, as this has lured a lot of people into investing in real estate in Dubai. They have replaced the three-year visa with a six-month multiple entry visa, which is expensive and requires a lot of paperwork. It makes life more complicated; with this visa people cannot buy a car here or place their kids in school. It's very important to resolve this issue, because it will attract foreign investors."

To stimulate the commercial market, governments must also provide incentives for companies to set up shop in the UAE, says Hesham. "When companies set up offices in a country they create job opportunities, housing requirements and increase consumer spending -this is important for the economy. They should especially offer incentives to financial institutions and trading companies."

But above all, he says the industry needs transparency. "They need to have clear, transparent regulations in real estate and ensure that buyers' rights are protected."

Hesham's picks

Burj Dubai_ Hesham predicts that once opened, Burj Dubai will increase the value of property in the area surrounding it.

Executive Towers_ This recently completed development is well located and will benefit from being close to the Downtown Burj Dubai district.

Infinity Tower_ Due to open in June 2010, this tower's spiral design will offer residents panoramic views of the sea and Dubai Marina.

Victory Heights_ Here you can get large, reasonably priced villas close to Dubai Sports City's facilities.