Dubai Property Market Predicted to Falter

Property experts have claimed that Dubai is one of the riskiest countries to invest in property at this time. It is claimed that the oversupply and declining population means that the Dubai property bubble is likely to burst in the near future meaning many property investors will lose money on their investments.

Some have likened Dubai’s current housing market to Hong Kong’s market at the start of the decade when it experienced a housing crash, and also draw similarities to Singapore and Ireland who have a history of boom and bust cycles in their property markets. Between 1997 and 2003 Hong Kong saw many real estate prices plummet as much as 70% meaning many property investors lost a lot of money in a very short space of time.

It is predicted that Dubai’s housing market could be in for a sharp decline in the next two quarters, although after this investors may start snapping properties up at seemingly bargain prices.

Any drop in the market will likely have an effect on Dubai’s rental market. With more houses on the rental market, the higher the competition and therefore rental prices are likely to be pushed down.

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