New Report Shows Increased Pressure On The Dubai Property Market.

 

 

Dubai MarinaA recent report has shown that the Dubai property market is continuing to struggle as a result of the global economic slowdown, with sales figures for property in the Emirate remaining sluggish for the second successive quarter. Additionally, experts are also warning that the Dubai market is facing increased pressure due to the Eurozone crisis, and poor economic results in the US. 

 

The most recent report from CB Richard Ellis has shown that there were almost 1,500 residential property transactions in Dubai in Q3 2011, down from over 2,600 the previous year. Since the start of the global credit crunch in 2008, the Dubai property market has been under considerable downwards pressure due to factors such as the lack of overseas investor demand and excess supply in the market. Once seen as the barometer of the overseas property boom, Dubai is now beginning to face challenges similar to many more mature property markets. 

 

The latest figures are now showing that the demand for villas in Dubai remains relatively strong, especially towards the luxury end of the market, which is driven by a lack of supply. Apartments however are seeing downward pressure on both sales prices and lease rates, as increased stock continues to come onto the market. 

 

Despite the challenges within the Dubai property sector, the overall outlook for the emirate does appear to be brightening with the International Monetary Fund now predicting growth of 3.8% for the year. This figure was recently revisd upwards from the initial estimate of 3.3%, as the IMF acknowledged early signs of a recovery in the emirate.