Property Prices In Dubai Start To Reverse

Its no longer a secret, prices in the Dubai real estate market are on the way down, in what represents a rather large change of fortune in the real estate sector here. Since the opening up of the market to foreigners in 2002, Dubai properties prices have been up until this point only ever been on the increase. And it certainly wasn’t small increases that were being seen across the market! Some developments were seeing 200% premiums being reached on properties within a short space of time. Much of this was no doubt down to speculators, looking to make some quick money by buying and quickly selling at a profit. And for a long time and for many investors it proved a very lucrative business, with a good deal of people able to walk away much richer. But this could only ever go on for a limited length of time before the market became overheated, and prices started to drop. No doubt the current world financial crisis helped speed things along, but the market here had seen large price increase in only a very short time, and a correction at some point was always due.

The Dubai government has been implementing measures to sure up and tighten the legal framework of what is still a very young market, in an attempt to curb overheating and a resulting price drop. But it was all a little late, and combined with current economic problems, has been unable to prevent what some are now speculating could be a price crash. The introduction of a government advisory committee to stabilize supply and demand may not be able to help too much at present, but will certainly be an asset in the future. So where does all this leave the Dubai real estate market today?  Well initially we can probably expect prices to continue to fall, as speculators leave the market and prices begin to balance out to fit the true level of demand for property. Once confidence has been restored in the market things might quickly start to look a lot more positive.

If the Dubai economy continues to grow, then the Emirates property sector will continue to attract people. After all Dubai still has all the attractions that made it such a popular destination in the first place. With the population still predicted to grow, and there still believed to be a long term undersupply of property, the current price drop could indeed be a blessing. 
 

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