Will the Dubai property dream become a nightmare?
When you think about it, it’s almost surprising something like this hasn’t happened already. Dubai property prices will slip 10 per cent by 2010, according to figures from Morgan Stanley.
UAE newspaper the National reported claims from the investment firm that a glut of new apartments will finally see a halt and then a drop in prices across the Emirate. Given what has been happening in the region over the last few years, on the one hand, this seems nuts.
After all, if you bought an investment property in Dubai two years ago, it’s likely to be worth around 50 to 80 per cent more than you paid for it – not bad by anyone’s standards.
‘Deals done daily’
Blocks, villas and gated communities have been springing up by the dozen and new deals have been announced daily. Dubai has been surfing on the most incredible development wave in history, and everyone has been along for the ride.
According to the Morgan Stanley data, reported by the National, any adjustment in Dubai could spill over into Abu Dhabi, other areas in the Middle East and even further afield. The question for investors is, assuming all this does happen, is now a good time to sell? Or is there still time to make further profit?
Now for the good news
Even with the publication of such forward-thinking statistics, there are signs that Dubai may no longer be a win-win situation, if it ever really was one for all who came to make investments. The good news? Qatar’s property market is set to continue growing. Welcome to the truly unpredictable and global game that is modern property investment. Around the world ticket now needed as standard.
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