Developers tell Colliers CRE survey the market has not yet hit bottom for homes or offices
Dubai's property market has not bottomed out yet, a new report suggests. The research from real estate agent Colliers CRE International also found that 25% of Dubai's properties are empty.
The findings are based on a survey of developers at last week's Cityscape Dubai event.
Colliers found that about three-quarters (71%) of the developers believe house prices in Dubai have further to fall. The developers also think that office capacity will double over next year, pushing prices down further.
Prices for residential properties were down 49% in the third quarter of 2009 against the same period in 2008, according to Colliers. For offices, prices in Q3 were down 58% compared with the same quarter in 2008.
The report said that around 340,000 units would be on the market in Dubai by the end of 2009 and another 34,300 would be completed in Dubai over the next two years.
Of the developers surveyed, 18% admitted they had suspended certain sales until the market recovers.
Colliers spoke to 28 developers exhibiting at the Cityscape Dubai 2009 expo.