Dubai property market surveyed as Emaar miss Cityscape

A study by research group Proleads, and commissioned by the organisers of the Cityscape exhibitions - of which the centrepiece Dubai event is to open within three weeks, with a number of sector observers waiting to see the mood amongst developers and exhibitors at the event, has examined over 3,000 projects across the GCC.

The projects covered by the study were those that were individually valued at over $10m, and despite the slowdown finds that developments within the UAE are worth an estimated $900bn, over half of the total value of all those surveyed.

'In the worldwide shake out, no region has been immune and, as a result, a strong element of realism has entered the real estate investment landscape,' said Chris Speller, Cityscape's Group Director of the study and the upcoming event.

The interest from observers has been heightened given the large number of cancelled developments, the cut-off of project funding and investor financing options, the exodus of speculative buyers and the dramatic fall in prices in many of the city's communities.

A study by Knight Frank on 2009 Q2 property prices in a number of markets found that the average in Dubai was 47% down on the same period last year, although the rate of decline had slowed from the previous quarter as the market sought its bottom.

Across the UAE as a whole, a total of 495 projects are currently underway, with 217 having been cancelled or put on hold. In the commercial, hospitality and retail sectors, 877 projects are underway, compared to 349 that have been cancelled or put on hold.

Proleads claims accuracy of 90% on its findings, which it says hold true to mid-September.

Show absence

Emaar Properties, the region's largest developer, which is set to merge with three government-owned property units within the next few months, will not be participating in Cityscape Dubai.

In a statement the developer said that it would be concentrating on its existing portfolio and the completion of the $20bn Downtown Burj Dubai project: 'With the opening of the Dubai Mall and Dubai Fountain, and Burj Dubai scheduled to open this year, Emaar's concentrated efforts are towards making the Downtown Burj Dubai community one of the best developments.

'We have taken a strategic decision not to participate in Cityscape 2009, but will evaluate our participation in Cityscape 2010 based on our objectives, strategy and announcements next year.'

According to press reports government-backed developer Nakheel will also not be participating in the event. The group is to continue to scale down its operations as parent group Dubai World moves some of the company's assets and staff to investment arm Istithmar World.

Update: Emaar and Nakheel released statements two days after the original announcements stating that they would be attending Cityscape following 'discussions with the various agencies involved in organizing the event'.