Categorized | International

Dubai’s Commercial Real Estate Market Continues to Struggle

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Commercial real estate sales dropped almost fifty percent in Dubai during the third quarter. Dubai’s commercial real estate market has struggled throughout the year, and this most recent decline reflects much of the uncertainty that still exists among investors in the region.

Rents in Dubai also fell during the third quarter, and have now dropped nearly twenty percent this year. The decline in rents can be attributed to reductions made by landlords in order to attract tenants. Residential property prices also experienced declines, with smaller homes being hit the hardest.

Only the luxury property market performed remotely well. Such properties have experienced only a two percent decline in the past year.

After a major property boom from 2002 until 2008, the market was hit by a major crash as a result of the global financial crisis, and has failed to recover since. In fact, the market has continued to decline. Since 2008, the residential real estate market has fallen more than sixty percent.

Analysts fear that the market could fall even further into 2012, as an abundance of new homes are expected to hit the market for the first time. They believe that the market may drop another twenty percent before all is said and done.

In the end, there is no clear indication that prices and sales will improve any time in the near future. With another global financial crisis looming, and real estate markets around the world continuing to face declines, it is not likely that Dubai’s market will recovery any time soon.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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