Majority of homeowners in Dubai are still suffering from the real estate recession that started in 2008. According to them, the dip in the price of the property is too high for them to offload it at their current value.
According to an ‘Emirates24|7’ poll 81 per cent respondents think their property in Dubai is still in negative equity. More than half (55 per cent) of participants said their property is valued at 50 per cent less than what they’d bought at. Another 17 per cent said their losses are between 30-50 per cent, whereas, nine per cent said they are in 25 per cent negative equity.
“The losses are substantial and I’m willing to keep my property for some years so that it can appreciate a bit. Even though I may not make a profit, I at least want to get what I invested,” said one respondent.
However, there are some owners, who’ve seen their home value reach the same level at what they bought at and in other cases it has seen a slight appreciation.
The poll reveals nine per cent respondents see the value of their house the same as their purchased price and another 10 per cent have seen a slight increase in the price.
Experts believe that the drop witnessed after 2008 has finally stopped and the real estate now seems to be stablising with a slight appreciation in value in certain communities.
According to real estate reports, the Dubai property market has been steady for quality buildings in established locations in 2011.
Sales prices and rents for villas were stable with only minor declines for apartment rents and sales prices of one and foour per cent respectively, while the office market witnessed slight declines of 3% for sales and leasing, according to the latest Q3 2011 report from Asteco.
Although sales prices for apartments were stable in sought after locations such as the Palm Jumeirah, Jumeirah Beach Residence and Dubai International Financial Centre, properties in Discovery Gardens experienced a 10 per cent drop.
Quality buildings in established developments however continue to hold their value as demand both from newcomers and ‘local’ relocations has been rising.