Investors are now increasingly eyeing high-quality properties in Dubai's core locations, where prices have started to stabilise and demand level have shown an uptrend over the past months, industry sources told Gulf News.
According to Ken Rohan, senior investment consultant of Asteco Property Management, transactional volumes have likewise increased, but investors are definitely more focused on quality completed projects in prime areas.
"The developments that have not completed have ceased to attract any interest from owner occupiers or investors due to the uncertainty about completion of product and the eradication of the speculative market," Rohan added.
However, average residential prices are expected to decline this year as more supply comes to the market, according to Jesse Downs, director of research and advisory services, Landmark Advisory.
"The remaining residential supply is subject to price declines varying from marginal to more significant, depending on quality delivered, location and other factors like amenities and quality of the community or master development," she added.
Significant price declines are also expected in the commercial market due to the anticipated supply glut, but project delays and infrastructure issues, particularly in Business Bay area, could slow down the "supply pipeline".
Dubai's property boom stopped in the late part of 2008, causing prices to fall by half.
Some analysts have predicted that the market could slowly recover in the first half of this year.
