Landmark Advisory's quarterly report observes the early signs of confidence returning to both Dubai and Abu Dhabi

Dubai, United Arab Emirates - 20 April 2009 - Landmark Advisory today launched its new Q209 Dubai & Abu Dhabi Real Estate Report, which describes the early signs of renewed confidence in the property market. 

"For both Abu Dhabi and Dubai, positive signs of early recovery are emerging. Property listings are drying up as owners increasingly prefer to hold their properties for the medium- to long-term, instead of discounting prices further just to attract immediate buyers. Meanwhile, more owners are choosing to lease their properties as a cash-generating alternative to selling," said Jesse Downs Director of Research and Advisory Services, Landmark Advisory.   

According to Landmark Advisory, average prices in Dubai during Q109 decreased 23% for apartments and 32% for villas, compared to Q408. Prices for 4-bedroom villas suffered the heaviest declines, at 16%.  Average leasing rates for apartments decreased 4% in Q109, with 1-bedroom apartments declining the most, at 11%. Average villa rents declined by 17%, but the number of villa rentals increased by 26%. Overall, residents are favoring moves to higher quality developments in Dubai.

"The leasing market in Dubai is still strong, showing continued interest from internal relocations and excess demand from Abu Dhabi. The future of sale prices and transaction volumes will depend largely on the evolution of lending policies and demographic changes over the next four months. In terms of population, additional outflows are likely to coincide with the end of the school year," said Downs.

Turning to Abu Dhabi, sale price declines accelerated during Q109, after falling by 5%-15% in Q408. Secondary market listing prices fell 15%-20% for apartments and 25%-30% for villas. However, by the beginning of Q209, sale prices started to stabilize as sellers slowed the pace of price-cutting.

Abu Dhabi's rental market has also stabilized. After sky-rocketing in 2008, some rents have begun to show signs of a marginal correction. On average, asked rents for apartments remained stable during Q109, indicating the resilience of the apartment segment. Villa rents, however, decreased 10%-15%, with listed rents on 4-bedroom units falling the most, at 20%.

"Abu Dhabi's sale prices are starting to stabilize, indicating improved market confidence. The buyer-profile is changing: end-users are replacing investors as the predominant owners of freehold property. End-users are particularly interested in developments that are close to completion, like Al Reef's Arabian district and Reem Island's Marina Square.  Investors, on the other hand, are waiting for a price floor to emerge in order to reduce risk and maximize future returns," said Downs.

Landmark Advisory's Q209 Dubai & Abu Dhabi Real Estate Report will be available for download at their website http://www.landmark-advisory.com. 

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About Landmark Advisory
Our mission is to leverage the synergy created by our talented consulting team, unique market position, and network of specialist in order to provide superior real estate consulting services. High profile private and governmental organizations have engaged Landmark Advisory for expert advice ranging from fund & portfolio management to feasibility & market research analysis.

Based on worldwide strategic alliances with best?in?class institutions, we have unparalleled access to specialized data about the market dynamics affecting both sides of the buy & sell equation. In addition, our real-time transactional database provides direct insight into the current market cycle.

For further information, kindly contact:
The Portsmouth Group
Name:Tania Chuppe or Ibrahim Asran
Email: tania.chuppe@theportsmouthgroup.com
ibrahim.asran@theportsmouthgroup.com
Telephone: +971-4-369 3575

© Press Release 2009