Investors who bought into Dubai’s residential property market after the property crash and who are looking for an exit should consider doing so now, according to Core Savills’ chief executive, David Godchaux.
Its latest report states that average prices for apartments and villas reached their highest point in the third quarter of last year at Dh1,452 and Dh1,415 per square metre, respectively.
Prices have declined since and face a further fall over the next six to 12 months, he said.
“If you wanted to sell and take a short-term gain, it’s certainly the right time to do it now – in the next two, three, four months. But If you didn’t buy speculatively and you are in for the long term, it’s probably not the right time because prices will go up again,” he said.
The difficulty, however, would be in achieving a sale at a suitable price. Mr Godchaux said that there had been a widening gap between expectations of buyers and sellers, which has contributed to the decline in the number of property sales.
“If you are an owner in Dubai and you have a mid-term or long-term vision, you don’t have a reason to sell quickly.
“Transactions that will happen will be at a lower price, but will there be a lot? I do not think so, because people are not forced to sell. It is nothing like 2008.”
mfahy@thenational.ae
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