Do we see rebound in property market on 2011?

The property market in Dubai is stabilising and set for a rebound in 2011, according to the latest research but there is still a concern in the industry about over supply.

There are indication that Dubai property market is improving because of the volume of transactions has remained consistent in the 1st half of 2009 and because of the lessening gap between asking and the achieved prices.

The stabilisation of transactional volumes is an important indicator which reflects improved confidence among investors and the market is beginning to stabilise albeit at significantly lower levels of pricing than those seen earlier in the year,' explained Craig Plumb, head of research at Jones Lang LaSalle Mena division

Asking prices for properties have fallen 49 percent from their peak in the third quarter of 2008, but the rate of decline slowed in the second quarter of this year. The asking prices have fallen more sharply than achieved prices in 2009, which is another indicator of price stabilization.