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Buyer Inquiries, Transactions In Dubai Realty Market Decline in 2015 Q4

Posted by Jereco O. Paloma on Jan 12, 2016 11:50 AM EST
Daily In Life In Dubai more big
DUBAI, UNITED ARAB EMIRATES - NOVEMBER 17: Morning breaks over the city skyline of Dubai on November 17, 2013 in Dubai, United Arab Emirates. Dubai is recovering from its slump during the global financial meltdown. The government has recently released figures that show that construction and tourism and the non-oil economy are once again growing (Photo : Christopher Furlong/Getty Images)

As investor sentiment weakens, coupled with waning market conditions in the last quarter of 2015, real estate industry observers in Dubai warned property investors of a relatively sluggish market this year.

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Data from the Emirates NBD Dubai Real Estate, as reported by AME Info News, showed that the outlook for Dubai's real estate this year did not show any major improvement compared to its performance in the last quarter of 2015. Aside from the overall negative outlook of Dubai property market this year, the report also noted that inquiries from new buyers would likely take a sharp drop. 

Of the surveyed real estate agents in the survey, about 47 percent of them said Dubai real estate might experience a decline this year. They believe that real estate value in Dubai for this year will plunge throughout the year. Only about 32 percent of the surveyed agents believe that property values would appreciate this year.

Khatija Haque of Emirates NBD said the survey results validated the data from various sources in Dubai. For her, the sentiments and predictions of Dubai-based real estate agents coincided with national figures, and she noted that real estate prices and values in Dubai would continue to plunge in this year.

"The survey is consistent with recent data on residential sales and lettings prices in Dubai, which show prices continuing to ease. However, the momentum of [the] price decline has moderated in December. The strong USD and low oil prices are likely to remain headwinds for the real estate sector in 2016," Haque was quoted as saying by AME Info News.

A separate report published by the Kipp Report showed that more than half of the surveyed agents (55 percent) reported that they've already observed depreciation of values on sold properties. The report, however, noted that the rate of depreciation was the lowest since June last year. 

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