Property sale and rental prices on the weakest property market of the Persian Gulf have declined more than by 50% since 2008. Buyers shouldn’t hurry up because analysts forecast the next residential prices fall in Dubai.
Experts, interrogated by believe that low-end housing segment will be suffered most of all. Prices and rental rates will decrease there by 10-15%. The main reason is the excess of low-end property in Dubai. Residential luxury property prices will fall not so significantly, the analysts add.
Specialists of Colliers International counted that to the end of 2011 about 13 thousand of properties in Dubai will come into the market, next year 27 thousand of properties will fill up the market. It will put pressure on prices, the experts say.
As Prian.ru reported, the government of UAE made a decision to increase an expiration date of the resident visas for property buyers from six months up to three years. The Authorities hope to attract new foreign investors. Property owners, who purchased properties worth more than 1 mln dirhams ($ 270000), can expect to receive a three-year visa.
But analysts doubt that such government’s steps can significantly support the Dubai property market. According to experts of Jones Lang LaSalle Company, buyers are aware of the current market situation and will not overpay for property only for visas.
