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UPDATE 1-UAE property market starting to bottom out -HSBC

Jason Benham Reuters
UPDATE 1-UAE property market starting to bottom out -HSBC - HSBC - fall - values - stabilise - prices - real estate - property market - UAE

DUBAI, (Reuters) - The real estate market in the United Arab Emirates is beginning to bottom out as prices stabilise, but values could still fall further as more property comes onto the market, HSBC said in a report released on Sunday.

Agreed prices in the UAE rose 4 percent month-on-month in April and 5 percent in May, but were still 23 down from a peak hit in September 2008, the report said.

The once-booming real estate market in Dubai, one of the UAE's seven emirates, has been hit particularly hard by the global financial crisis, as prices tumble, developers cancel projects and jobs are slashed.

Any recovery in the country's property market would go some way to easing investors' concerns about the health of the second-largest economy in the Gulf Arab region.

But the extreme boom-bust characteristics of Dubai's property market, in particular, may keep some investors at bay until at least 2011. [ID:nLC30504]

"The distressed stock is gradually clearing due to renewed interest as well as some sellers re-pricing, pulling their properties off the market, or putting them up for lease," HSBC said.

"Sentiment seems to be improving and sellers are now less willing to negotiate."


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