Market activity remained largely subdued for the second consecutive quarter as Dubai’s traditional summer slowdown unfolded with limited movement within the real estate sector.
Total residential transactions reached just 1,459 during the third quarter, against 2,649 transactions for the same period last year.
The low number of completed deals, typified market performance in what turned out to be a very passive quarter.
As China, the US and the UK see their economic growth forecasts reduced by the IMF, the validity of the global recovery has again come under scrutiny.
With no shortage of economic headwinds prevailing in Europe and the US, the potential fallout from another liquidity crisis needs to be considered from a local perspective.
However, amidst an environment of growing negativity, the UAE has actually had its economic growth figures revised upwards by the IMF.
New estimates project 2011 growth at 3.8%, up from 3.3% earlier in the year as the emirates continue on a modest path towards recovery.
In a slightly conflicting outlook on the state of the local economy, a recent HSBC report has suggested that private sector activity is starting to wane against slowing global trade volumes.
However, this will not be sufficient to dampen economic expansion for 2011 at least.
The Global Competitiveness Report (2011 – 2012) placed the UAE 1st in the region and 8th overall for quality of infrastructure.
The opening of the new metro Green Line in September is testament to the country’s continued progress in this field, with Dubai in particular, strengthening its credentials as a modern gateway city.
To date, 16 of the 18 stations of the Green Line are open for public use, with authorities expecting 100,000 passengers daily.
The new line passes through many of the most densely populated districts in Dubai, adding real value to the existing transport network.
Some stabilisation of rents and an increase in occupancy rates is anticipated in areas immediately surrounding operational stations as occupiers look to exploit the convenience of key public transport nodes.