Better Homes launches its market report on Dubai real estate; preview analysis and predictions unveiled

Covering several key chapters, State of the Market 2009 will address Residential, Commercial, Retail and Hospitality sectors; examining and predicting future behavior of Dubai's overall real estate market over the next 2-3 years.

"This is the first time Better Homes has engaged in this sort of exhaustive market study," said Ryan Mahoney, Managing Director, Better Homes LLC. "The report will aim to provide clarity to market observers during these turbulent times and will provide proprietary data, totaling approximately 100 pages of crucial insight in the full version of the report, available from Wednesday".

Providing a preview into the reports, available from Wednesday 29th April, Better Homes has unveiled the following information on Dubai's real-estate market:

Residential preview:

2009 - Affordability is the name of the game

- Prices will continue to fall as long as demand stalls and income levels remain at the point where property is not affordable for most end users
- A shakeout of speculative investors will lead to increased relative demand in the middle income market, rather than upper income segment.
- Rental demand will continue to exceed sales demand as uncertainty and liquidity constraints reign in buyers

Commercial preview:

2009 - Continued slowdown and decline in business activity further impacts sector

- Continued job losses in nearly all sectors of the economy, leading to companies looking to exit or downsize office space
- Price renegotiation will be sought by companies currently under contract
- Commercial projects that have not yet started construction, or made much progress in construction, are likely to be delayed, if not cancelled
- Lower office prices are likely to start attracting newly viable business ventures

Retail preview:

2009 - Significant oversupply hits current occupancy levels

- Mall of the Emirates, Mercato & Deira City Center continue to trade at close to 100% occupancy
- Festival Center, Dubai Mall, and Dubai Marina Mall are all currently trading with noticeable unopened stores.
- Established malls with sound anchorage, positioning and parking continue to deliver more stable rental income streams, but should experience some downward pressure on historical 2008 rental income revenues

Hospitality preview:

2009 occupancy rates fall on dwindling tourist arrivals and influx of supply:

- Plane fares and room rates have fallen, bolstering leisure tourist demand. Overall leisure tourists remain relatively stable from 2008 levels
- The state of the global economy begins to impact the Dubai hospitality sector as global business activity declines, resulting in a depression in hotel occupancies due to lack of business travel
- Hospitality projects that were previously delayed are delivered, increasing supply by an additional 30-35%
- Room rates drop on generally stable demand combined with increased supply

Much more insight will be available from the State of the Market 2009 reports, which will be launched at a special price to ensure availability to a wide audience.