Poor Outlook For Dubai Property Market

The Dubai real estate industry appears to be starting to feel the pinch, alongside many other property markets across the world with Dubai property analysts showing that freehold property prices are falling in the country.

In the past 12 months many freehold properties have fallen in price – in some extreme cases, by up to 70 percent. Many real estate agents are pessimistic about the future and believe that the real estate market still has a little way to fall before it hits the bottom.

The news may come as a surprise to some. Dubai has recently been seen as a good place to invest given the rising construction costs, abundance of interest and the swelling population of expats. However it appears that it is not immune to the global financial turmoil and many believe that this is a period of correction after a long period of buoyancy.

Although the decline appears to be affecting all areas, the decline varies depending on the type of property. Lower prices developments are one of the best types of property to have your money invested in as these have seen one of the smallest percentage drops in price, with some not seeing a reduction at all. Higher priced developments are seeing some of the highest price percentage drops.

With a surge of properties on the market, the renters are finding there is increasing choice on the market thus rents for both types of properties appear to be reducing. Commercial property rents are the worst hit with a 60 percent drop across the board.

Overall, 2009 is expected to be a poor year for the Dubai property market and many industry experts do not expect it to pick up until mid 2010.

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  1. dubai property | Jun 28, 2010 | Reply

    Agreed with all this but now situation is getting better and prices are likely to rise again within a short period of time. Dubai real estate had really gone in huge crisis but it has also succeeded to get rid of it within a short period of time.

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