Friday 11 September 2009

In spite reports of recent growth, the real estate sector in UAE remains "uncertain"

In spite reports of recent growth, the real estate sector in UAE remains "uncertain", according to a consensus of real estate brokers.

Simon Kylie, head of research at emerging market specialist Real East Watch, advised investors to take a cautious approach as there are no "solid fundamentals" underpinning the industry.

His comments follow news the emirates have seen the highest level of sales activity since 2008, according to new data from real estate consultancy Landmark Advisory.

Mr Chadd noted these figures may indicate the market is "stabilising", but said: "It would be a brave person to suggest that now is the time to invest in Dubai."

Those still keen to buy should opt for one or two-bedroom properties as these offer the best chance of receiving a high return on investment, he added.

In Abu Dhabi, meanwhile, Landmark Advisory's figures suggest prices of villas remained stable, while lower-priced properties declined by up to five per cent.