source Arabian Business
Residential sales in Dubai picked up in February, with the number of properties changing hands doubling that seen at the start for the year, according to a new report from Jones Lang LaSalle.
April’s edition of Global Market Perspective says that almost $520m of mainly residential sales were recorded in Dubai in the second month of the year – twice the value seen in January.
Opportunistic investors from the local region and overseas were starting to regain interest in the sector, in part as a result of increased regulation and transparency, the report says.
The trend should “translate into increased commercial real estate transactions in the fourth quarter of 2009”, it adds.
The report goes on to predict that the market will stabalise in 2010, ahead of a full price recovery in 2011.
However, although capital was being redirected in the Middle East the region would see a net outflow as sovereign and private investors take advantage of overseas markets.
"While the regions’ property markets have adjusted much more quickly than other regions, 2009 will be a year of correction,” Jones Lang LaSalle analysts said.
The refinancing of banks had helped boost liquidity in the real estate sector, and investor interest had been renewed by the lowering of prices.
Plans for new office and residential space in Dubai for 2012 is now half the 2008 figure, the report points out.
The Middle East is one of the few global regions tipped to see positive economic growth this year, with the International Monetary Fund estimating 2.5 percent growth.
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