Property in Dubai

The market for Dubai in property, which was noted for some time for evincing very high value and attracting a large degree of investment and activity in the areas of development and construction projects, have dropped off in the period of the global economic recession. According to observers, a Dubai real estate bubble occurred and caused the corresponding loss of value in Dubai property prices, with too many projects having been undertaken and buildings constructed on property in Dubai to all be sold at equally valuable rates to purchasers. In this regard, Dubai real estate observers have compared the trends for falling and rising Dubai property prices to the similar occurrences in such cities as Shanghai and Moscow.

At present, the most optimistic forecasts for growth and economic recovery have been directed toward Dubai real estate located in the central business districts, while views on Dubai property located elsewhere, and specifically that which has been created for residential rather than commercial purposes, are less positive. People have predicted that such other forms of property in Dubai are likely to continue to experience substantial economic problems for the foreseeable future, in that this Dubai real estate has currently been experiencing high levels of vacancy. Elsewhere, it is believed that Dubai property still has a sustainable buyers’ market to support it, and that overall problems will lessen after the problem of supply exceeding demand becomes less significant. Economic forecasts seeing commercial Dubai property recovering its economic place after 2012, following a weak period from 2011.