Dubai property boom halts: The News

Sunday, November 16, 2008

DUBAI: Dubai property shares plunged and its biggest private developer slashed jobs this week as the global financial crisis tightened its grip on the tiny emirate, until now synonymous with the Gulf Arab real estate boom.

Dubai’s glittering skyline and luxury tourism sector have lured investors in droves over the past five years. But property prices have begun to fall, according to brokers and banks, in one of the clearest signs to date that the bubble has burst.

A real estate crash in Dubai would call into question the futures of millions of immigrant workers, many from India and Pakistan, and whether energy exporter Abu Dhabi would run to the rescue of its high-flying but poorer neighbour.”Villas that were very hot before the crisis have fallen. The buyers were chasing the sellers but now it’s the other way round,” said Quaid Abbas, property consultant at Engel & Volkers.

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Property prices drop by 15-30pc since Jan: Dawn

By Aamir Shafaat Khan
KARACHI, Oct 25: Property prices have further declined by at least 15-30 per cent this year as investors have been on the sidelines since 2005 owing to uncertain political and economic conditions in the country.

Even the formation of a new government after the February general elections and the PPP-MQM alliance in Sindh has failed to woo the investors. As a result, there has been no impact on the property market after these developments. Real estate dealers had estimated price hike by 20-30 per cent after the PPP-MQM alliance.

Real estate dealers said that investors were more interested in ‘playing with the dollar’ instead of taking risk in the property.

There are also reports that investors have been trying their luck in Malaysia and some other Islamic countries rather than property markets of Dubai and Pakistan.

Giving a brief review of prices, Owner of Pak Estate at Clifton Khan Zubair Shaheen said that a 500-yard plot in some phases of DHA is now priced at Rs7.5 million and the market lacks any enthusiasm among the buyers despite massive fall in prices. The same plot was available at Rs10 million in Dec 2007, falling to Rs8.5 million ahead of election. He added that even buyers are not ready to lift it at Rs7 million these days.

He said that a 1,000 yards plot was available at Rs18 million in December 2007. Its price had fallen to Rs15 million ahead of election and further fell to Rs12 million.

Khan said that some investors had been active in Malaysia and Oman after Dubai. He said only eight to 10 deals of property were taking place in DHA office as compared to over 100 deals in the boom period.

Chairman Clifton-Defense Real Estate Association Arif Malik was of the view that the price of property has declined by 30-40 per cent in the DHA, especially from January till now.

“Investors are busy in investing in dollar rather than property,” he said adding that there were hardly any investors interested in real estate. He also said that some investors, after making windfall from Dubai property boom, are now active in Malaysia.

For more on this article, please click on the following link: Property prices drop by 15-30pc since Jan: Dawn