Wednesday, April 8, 2009

Distressed property continues

The last 9 months or so, there has been a gradual increase in desperation amongst those looking to dispose of their properties in Dubai. Slowly but surely demand has ebbed away which initially caused a gradual slide in prices, although the pace of the falls has started to quicken of late. There are signs that new developments are in serious trouble and those who had literally doubled their money during the property boom are now counting the cost with many property prices back to where they started.

Among the more distressed property price sales reported of late include:-

A Palm Jumeirah garden home which sold for just AED5.8 million, a price which very few people thought they would ever see again. This is an approximate fall of about 50% from the highs reached only a few months ago.

There are also reports of distressed sales in Downtown Burj Dubai where properties are just not selling and investors are becoming more and more desperate to exit the region. There is a suggestion that one-bedroom apartments in the Burj Dubai (the tallest tower) are changing hands for just AED800k.

There is mention on the thread of a Palm Signature villa changing hands at just AED4.9 million against a valuation price of AED11 million in October 2008. Quite literally prices are continually falling and while there is some interest, buyers most definitely have the upper hand.

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