Dubai Property Prices Stabilized in 4Q 2009

Prices of properties in Dubai was said to have stabilised in the last quarter of 2009 after a year of declines.

Property prices in the emirate rose quickly in 2008 as speculators bought and sold apartments in rapid succession, sending prices up by 43 per cent in the first three months. Those gains have since been erased. Overall house price values declined 42 per cent between the fourth quarter 2008 and the fourth quarter of 2009.

The average rate for residential property in the final quarter last year rose to Dh1,022 (US$278) per square foot compared with Dh1,016 in the third quarter.

The number of transactions declined 15 per cent in the last quarter compared with the previous three months, but the broker declined to disclose how many properties were bought and sold over the period.

While Dubai property prices rose 1 per cent in the last three months on the previous quarter, the increase masked a significant difference in the performance of apartments and houses. While house prices gained 10 per cent over the period, those for apartments fell 4 per cent.

The rapid drop in prices resulted in many investors falling into negative equity and forced some to flee the country to escape their debts.

While international banks estimate that bad home loans could run to billions of dollars in Dubai, lenders have held back from repossessing homes in default because of untested foreclosure processes. That may be starting to change after Barclays said last week it had won several of the first repossession cases to make their way through the Dubai courts. The legal significance of these rulings remains unclear because the country’s courts do not rely on precedents.

The Dubai World conglomerate announced in November that it was seeking a six-month freeze on debt repayments. It has since been in talks with about 90 creditors to restructure as much as $22 billion.

Dubai sheikh will invest $272m into Dubai's real estate

Dubai International Holding Company, an investment firm owned by Sheikh Maktoum Hasher Maktoum Al Maktoum, is reported to have plans of investing AED1bn or $272 million in Dubai real estate in the first half of 2010.

"If you look at all the asset classes internationally, stock markets or anything else, right now the most depressed prices are for properties. We will be investing AED1bn in different projects across Dubai," Sheikh Maktoum told the paper.

Burj Dubai Renamed to Burj Khalifa

Burj Khalifa is the new name for Burj Dubai, the world's tallest tower, which officially opened today, Jan. 4, 2010.
Burj Khalifa, which translates to the Khalifa Tower, is named after UAE President Khalifa Bin Zayed.
The renaming of the 828-meter structure came as a surprise for many, as it had always been referred to as Burj Dubai.
Dubai ruler Mohammed Bin Rashid inaugurated the tower in a ceremony this evening in Dubai.
Dubai has lived in an age of excess. Besides the Burj Khalifa, the spectacular Dubai Fountain can be found nearby in Dubai mall.