Property analysts expect sales and rental values to fall in Dubai over the coming months, foreseeing a further decline of between ten and fifteen per cent.
In an interview with Gulf News, head of research and consultancy at CB Richard Ellis (CBRE) Matthew Green explained that it is important to look at “the fractional nature of the market as it stands”, which has resulted in certain developments experiencing price shifts, but not the sector as a whole.
Mr Green stated: “Overall demand is still outweighed by existing supply and this situation is unlikely to change in the short term.”
He added that economic difficulties in the US and Europe have not done the Dubai property market any favors.
Last month, CBRE issued a report that showed rents in several of the northern emirates have dropped considerably.
According to the organization, rental prices for apartments in the region fell by an average of 18 per cent year-on-year, with Ajman and Umm Al Quwain among the hardest-hit areas.
The UAE market, especially Dubai, was one of the markets worst hit by the global financial crisis and the credit crunch, with a large number of projects put on hold and prices dropping by up to 60 percent from their peak in 2008.
The latest Global House Price Index from real estate agents Knight Frank reported Dubai prices fell 4.7 percent during the last year.
