Growth in Dubai house prices slows to 16% in Q2

Source : Business Times - 9 Oct 2008

Dubai house prices rose 16 per cent in the second quarter from the previous three months, when they leaped 42 per cent, as prices neared as much as people are prepared to pay, Colliers CRE plc said yesterday.

House prices increased an annual 76 per cent in the second quarter. The average price per square foot for all types of Dubai homes was 1,833 dirhams (S$732). ‘This was a natural slowdown,’ said Ian Albert, regional director of Colliers for the Middle East.

‘We are heading toward a natural price barrier beyond which people do not want to pay.’ Dubai property stocks have plunged 51 per cent in the past six months on concern that the emirate’s property boom is coming to an end. Property prices will be flat through 2010 after they quadrupled over the past five years, Colliers said on Oct 5.

‘The global liquidity crisis did not come into this report,’ said Mr Albert. ‘How that has affected the Dubai property market will be shown in the third quarter.’ Dubai apartment prices increased an annual 83 per cent in the second quarter, while villas increased 73 per cent, Colliers said. Townhouses as a sub-category demonstrated the slowest increase with a 38 per cent gain.