Categorized | International

Global Economic Turmoil Affecting Dubai Property Market

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Any hope that Dubai’s property market would once again surge in the near future has essentially been shattered according to the latest reports. As fears of another global recession linger, the overall forecast for the Dubai property market is one of very slow growth in the coming years.

While the Dubai market is not expected to take a turn for the worst, it is expected to slow down substantially. For many investors, that news is not exactly welcome. Many had believed that Dubai was due for a very quick rebound after facing a downward trend for the last two to three years.

Real Estate analysts believe that Dubai will not start to demonstrate a significant recovery until 2014 unless another global recession is somehow averted.

Many analysts believed that recovery was imminent not too long ago, as price increases were starting to be seen across the residential real estate market. Furthermore, Dubai has proven to be the most stable real estate option in the Arab region in the past few years.

Fortunately for Dubai property owners and investors, the emirate is not expected to see a decline in the real estate market, but rather a period of stagnation. Properties in the emirate are still very attractively priced, and those that are able to weather the storm of a global recession will likely still consider buying property in Dubai.

Although Dubai is not facing the same debt crisis as many of the European nations currently in turmoil, it would be indirectly affected by a global recession. Should such an economic situation sweep the globe, it would likely cause oil prices to fall. Declining oil prices would adversely affect the Dubai economy, though many believe that it will not present a major problem to the emirate.

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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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