DUBAI -- This city's six-year property boom appears finally to be over, with asking prices for some homes here falling as much as 19% in October from the previous month, according to a closely followed survey.
Home prices were climbing sharply as recently as the first half of this year. But over the summer and fall, tightened local lending collided with the global financial crisis to choke off easy credit. That scared away buyers, especially local and international property speculators who have helped fan years of price increases.
Other factors were at work. Dubai has been rocked by a series of arrests and probes at several big property developers and financial institutions. No charges have been filed, but the dragnet alarmed investors. Government officials themselves moved to tighten regulations in order to slow down run-away speculation and property flipping.
Analysts at HSBC Holdings PLC said Wednesday that average asking prices for homes in Dubai fell 4% in October from September. Advertised prices for upscale Dubai "villas"--typically stand-alone homes in a master development--fell by 19% month-on-month, the bank found. In next-door emirate Abu Dhabi, average home prices fell 5%.
Tuesday, November 18, 2008
As Oil Goes - So Goes Dubai?
Survey Signals Dubai Housing Boom Has Ended