mixed predictions for dubai property market
News Posted On: 20 January 2012
Although certain sections of Dubai's property market may recover slightly during this year, property prices are still expected to decline overall. This is due to the continuing global economic situation and the release of new developments.
However well-established communities such as Downtown Burj and Emirates Living could see property prices rise by between 5% and 10%, while those with property in less desirable areas could see the values decline by between 3% and 10%.
Last year saw property prices and rents in prime areas increase slightly and analysts expect this trend to continue. Rents and property prices for less popular areas are expected to continue to soften.
From the beginning of 2007 to mid-2008 property prices increased dramatically, as billions of dollars’ worth of new projects were launched. The financial crisis saw a dramatic change with prices declining by 60%.
This year is expected to see the launch of more affordable housing projects, but the worry is this could be hindered by high land prices and declining property prices.
Analysts see several challenges to the recovery of Dubai's property market: oversupply, the economic crisis in Europe and a lack of clarity and transparency.
Neighbouring Abu Dhabi also isn't expected to see much of a recovery this year as prices could fall by up to 10% due to increased supply. During the economic crisis property prices in Abu Dhabi remained much steadier than in Dubai, but analysts are worried about the number of high-end homes predicted to come online in the near future.
View Abu Dhabi property for sale
Written by Les Calvert
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