Dubai may be landlord market post-2013

Dubai's property market is likely to move in favour of sellers and landlords post 2013, while price reduction will notably be seen in areas where new supply is released, according to Cluttons.

"From 2013 onwards we see a definite shift of fortunes where it is now a buyers and tenants market, the sellers and landlords will be re- balanced. Dubai is and continues to be a destination of choice and as long as the job market continues to strive then the property market will continue on its path to full recovery," Mario Volpi, Sales & Leasing Manager, Cluttons Dubai office, told 'Emirates24|7'.

"Prices in general will continue to be soft but the larger reductions will only be seen where there are large hand over of units forthcoming. This will depress prices by a further 10-15. Where there are established communities with no more properties coming on to the market we will see a firming up of prices and in some cases increases too."

Saud Masud, Senior real estate analyst, Rasmala Investments, said: "Prices continue to trend down as per our long standing view. We expect another 20-30 per cent decline in next two years as supply will likely erode market values." He, however, believes real estate markets are fragmented in GCC despite oil being a common economic driver.

"We don't expect very robust asset price inflation in any one market in the foreseeable future."

On Monday, Jones Lang LaSalle said that the chance of any recovery in 2012 will be dependent upon the rate of economic growth and end user demand for Dubai residential property.

Dubai is expected to see completion of 5,000 units by end-2011 and an estimated 27,000 units completion next year, it said. According to Volpi, sales market in the UAE is primarily driven by owner-occupiers while a smattering of investors still are looking for bargains.

"It is still very much a buyers and tenants market and deals are being done by savvy buyers/tenants seeking out sellers or landlords who are agreeing deals at just under market rates. The rental market is very busy as tenants continue to push their existing landlords down in price when extending their leases or are busy trading up in size and or location as prices continue to fall," he added.

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