Dubai Property Prices Jump 7 Percent

Or 9% !!!!!!!!!!!!!!  or 30%!!!!!!!!!!

More bad news from Dubai. According the the Financial Times, Property prices in Dubai only jumped 7 percent in one quarter as “demand revived” and “lending conditions eased.” Quite who is expected to believe this sort of nonsense is beyond me.

Especially as just last month Dubai property prices rose 30 percent!!!

Dubai Property Prices Show Signs of Revival:

Dubai property prices have risen for the first time since the market crashed last year , up 7 per cent in the second quarter as demand revived and lending conditions eased, consultancy Colliers International said.

The volume of transactions in the third quarter also jumped 64 per cent compared with the previous quarter but residential prices were still 47 per cent lower than in the same period a year ago and are equivalent to prices in the second quarter of 2007, according to the consultancy’s Dubai House Price Index.

“The Q3 results indicate a ‘bounce’ in the market but we will have to wait for the Q4 results before we can say whether an underlying growth profile exists, indicating a potential recovery,” said Ian Albert, regional director.

The rise in the index, based on mortgage transactions, came as demand increased with better expatriate job security prospects – outside the troubled real estate sector – and easing bank lending requirements and loan to value ratios eased up lending to potential buyers.

It reflects a growing sense of optimism in Dubai, which was badly hit by the credit crunch as its vast debts combined with the puncturing of the real estate bubble a year ago.

A large-scale expatriate exodus failed to materialise, while financial support from the Abu Dhabi-backed UAE central government and healthier credit markets have helped the government start paying off upcoming maturities on its $80bn debt pile, restoring confidence in the city’s solvency.

Real estate agents say the market, which dropped up to 50 per cent from its peak last year, has moved on from a speculative bubble to a more user-oriented market.

But Colliers warned that an upcoming surge in completed properties will drag down average prices next year – though not across the board.

“Well planned mature developments in good locations, supported by facilities and community infrastructure will receive relatively higher demand,” said Mr Albert.

“The dynamic between consumer demand and the banks’ risk profile for lending will be fundamental to driving the price direction of each development in the coming months.”

Apartment prices rose 6 per cent, villas were up 9 per cent and townhouses rose 7 per cent between the second and third quarters, according to the index, which was launched in January 2008.

Earlier on in the day,

Dubai property prices rebound by 9% after bottoming out !

Said Business 24/7:

Property market in Dubai is showing initial signs of a turnaround with prices rebounding by nine per cent after bottoming out in April, according to a new report.

HC Securities & Investment in its monthly report on the Mena property market said the recovery follows a 30 per cent peak to trough drop in agreed prices and a 65 per cent fall when compared to peak advertised prices.

According to the report, improving sentiment and risk appetite, a negative real interest environment and attractive rental yields are some of the indicators for recovery. 24/7

So – we now have a disappointing 7 or 9% rise after last month’s 30% rise. But with the quadruple whammy of “demand revived,”  “lending conditions eased,” along with “improving sentiment and risk appetite,” this sounds like the perfect line of bullshit to me.

Ignoring the “slight” over supply problem, and rents continuing to fall through the floor, Dubai sounds like  a great place to invest your life savings about now. Sarcasm in case you were wondering. the day Dubai’s property prices jump 7% in one quarter is the quarter after I get offered a 140% no money down mortgage with a free Bentley. Whatever happened to those free Bentleys and BMWs ? Last I heard – none of them materialized. Still – at least they didn’t get dumped at the airport.