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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Menares are planning to be a reference body only, not a regulatory body and are hoping to be able to assist any country that falls under their framework. Rera have recently joined four other organisations (the International Real Estate Federation, the World Association of Valuation Organisation, the Royal Institute of Chartered Surveyors, the Asian Public Real Estate Association and the Urban Land Institute) who are responsible for regulating real estate affairs therefore it is little surprise that they are looking to expand their reach further.

As yet, Menares has not released details of any collaborations with other real estate organisations however it is reported that there are several discussions in the pipeline. Menares have said, however, that some of their main aims will be real estate and property education, professionalism in the field, and real estate practice.

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Nakheel has already received loans through Dubai’s bond scheme – a bail-out scheme worth $10 billion which was launched back in February – as they have seen liquidity problems thanks to house prices falling and a stagnant real estate market.

Nakheel are looking to repay a $3.52 billion Islamic bond, which was issued in 2006, before it matures in December as part of a restructuring move. The bond money was used to finance some of its many developments including the famous Palm Islands. The developer, like so many others, is now trying to work it’s books out so it can settle their debts and continue to build, develop and invest in Dubai’s property and real estate market.

To aid them, Nakheel has already embarked on cot-cutting exercises and is in the process of asking many of it’s contractors to take discounts on payments due.

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A new ‘cool off’ law is also set to be introduced. This law will give property investors a 15 day window in which to decide whether to commit to a contract on a property or not.

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