Dubai real estate prices may suffer a fall this year bringing prime property within the reaches of many, but will start moving up before the year is out. On May 17, Bloomberg Business Week reported Bank of America Merrill Lynch having said prices of centrally located property in Dubai will settle down after the recent price drop of nearly 45 percent. Experts predict that prices of residential property in Dubai may fall another 15% before stabilizing. Dubai based analysts have suggested investors that prime assets may soon reach a floor. If we couple these news with that of the IIF expecting an average economic growth of 4.4 percent in the Gulf region this year, then it is safe to assume Dubai real estate prices will hit the floor and swing around in 2010 itself.
The recent crash in Dubai real estate
According to industry reports, most property projects in Dubai suffered a setback following the global credit crisis. The inevitable result was crashing of real estate prices and defaults on payments. The setback of the market economy was closely followed by completion of a wave of constructions that saw supply exceed demand in Dubai real estate. [Read More]
