Sales price index rises 0.7%

Dubai : The sales price index for Dubai (SPID) properties increased by 0.7 per cent in the fourth quarter of 2009 according to figures released by reidin.com, an online information services provider.

According to reidin.com, SPID villas rose by 2.6 per cent during the fourth quarter compared with the third quarter.

However they have fallen by 19.7 per cent compared with 2008.

A recently released house price index report from Colliers International also showed that the increase in overall house price index was close to one per cent between 2009's third and fourth quarter.

Apartment prices decreased by four per cent in the fourth quarter of 2009 compared to the third quarter. Villas prices increased by seven per cent in the fourth quarter of 2009 compared to the third quarter.

Townhouse prices increased by 10 per cent in the fourth quarter of 2009 compared to the third quarter.

Unknown impact

As to whether the Dubai World debt restructuring — which broke during the fourth quarter of 2009 — will impact the property sector remains to be seen, according to Ian Albert, regional director of Colliers International.

"Anecdotally, we have learnt that the announcement of the Dubai World debt restructuring has influenced purchaser sentiment but in the context of seasonal adjustment it is difficult to assess to what extent at this stage," he said.