Categorized | International

Real Estate Market in United Arab Emirates Will Not Improve in 2012

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Analysts are predicting that the residential real estate market in the United Arab Emirates will likely hit its bottom in the next year. Unfortunately, the nation is not likely to get itself out of the bottom until at least 2013.

The United Arab Emirates has, by far, the worst performing real estate market in the Gulf. Home prices continue to drop, falling nearly ten percent in 2011. In some cities within the country, that number is actually higher. Prices are not expected to show any sign of improvement in the next year, as analysts believe that the market will remain flat once it hits its lowest level.

Although prices are not expected to improve, sales volume will likely show signs of growth. The growth in the number of transactions will likely take place as a result of improved interest among private buyers. Unfortunately, such an increase in sales won’t have a positive impact on prices. The majority of buyers in the market will be looking to take advantage of the bottomed-out low prices.

While the increase in sales volume likely won’t have a positive impact on sales in 2012, it will at least provide one positive factor to the struggling property market. The increase will likely contribute to an increase in prices during the following year.

The struggles experienced in the housing market sector have not had a negative impact on rental prices in the past year. In fact, it could be said that the struggling market has contributed to an increase in rent prices. Rents for many properties throughout the United Arab Emirates have increased, and will likely continue to increase in 2012.

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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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