Financial Trend Forecaster

Dubai: The Good and the Bad of 2011

The great slump of 2008 jolted Dubai real estate, so much so that even after three full years, it has still not returned to its former glory. Despite the efforts of the government and the private sector, properties in Dubai have faced a continuous decline in prices for several years.

The start of year 2011 was no different as the property market continued to be a disappointment for local realtors. Despite that, many believe that the recovery of Dubai real estate is just around the corner. According to many experts and analysts, the property market has touched rock bottom and will soon start improving.

The U.S and European economies have also played a major role in destabilizing the prices of properties in Dubai. The office market in Dubai was primarily occupied by U.S and European based companies but with economic turmoil, many companies relocated, abandoning their offices. The global economic crisis also affected the Dubai property market since it heavily depended on foreign investment. The oversupply and recession combined to double the effect on the real estate market, thus making it highly unstable. Because of the fall in sales and rental prices, the Dubai real estate market has now become quite tenant friendly. Continue reading →