However, property in the UAE as a whole has begun to show signs of recovery.
Transaction volumes in June and July reached levels last achieved in the third quarter of 2008.
Purchasers fall into two distinct groups. End-users are the dominant buyers of freehold property in Abu Dhabi, but investors continue to make up the majority in Dubai, Landmark Advisory stated in its August sales guide.
‘Sales in both emirates during June and July 2009 have been the most active since the third and fourth quarters of 2008, with the majority of transactions in Abu Dhabi focusing on nearly completed developments, while market prices in Dubai are stabilising in preferred locations and for specific unit types,’ the report said.
Abu Dhabi has weathered the property downturn better than Dubai, where apartment prices have fallen 10% to 15% in the last four months, the report said.
Villa prices in the UAE capital are stabilising after dropping 45% since the third quarter of 2008, the report stated.
On a more positive note, there was evidence that some properties in Abu Dhabi’s Al Reem Island and in the Arabian district of Al Reef Villas have increased between 5% and 10% in recent months.
The outlook for Dubai is less enticing, the report from Landmark observed. Falling rents could have the knock-on effect of reducing sale prices.
