N Yogesh, an Indian expatriate, has been residing in Dubai for the past seven years.
His pre-approved mortgage from a local bank expired recently as he couldn’t decide what property to buy.
“I am really confused whether it is the right time to buy a property or not. Some experts say the market has bottomed out, while some say it will continue to slide,” he told Emirates 24|7.
“When I check the newspapers, I see the asking prices going up for certain areas. What does that mean? So I have decided to continue staying on rent, even though I lost some money my pre-approved mortgage.”
R Aslam, a British expatriate, also echoes the same sentiment, but insists his decision is not based on any reports released by research agencies.
“Yes, I do read them for better understanding of the market, but my decision will never be based on those reports. I would rather do my own homework first, negotiate hard to bring the price down and most importantly stick to my budget.”
Real estate agents believe it is only when an investor has no intention of buying a property does he discuss numerous research reports.
“We do often gauge the interest of a buyer from the way the approach us. When they continue talking about market bottoming out or prices falling further in future, we assume they might just be window-shopping. But we do entertain them as they may come back when they finally decide to buy something,” said a real estate agent on conditions of anonymity.
Real estate residential prices in Dubai and Abu Dhabi have dropped by about 60 per cent and 50 per cent, respectively, since their peak in 2008.
Washington-based the Institute of International Finance says data for the first three quarters of 2011 suggests that the market may have reached its bottom, while Rasmala Investments and Arqaam Capital expect further declines.