Published: 9th September 2013
A report out this morning from Jones Lang LaSalle has predicted that the Dubai real estate market will see a sustained period of growth in both rentals and property prices from 2011 onwards, but that 2009 will rather be a correction period.
The report also stated that a number of Middle East North Africa (MENA) markets may in fact start to return to growth in 2010, however this was unlikely to include Dubai due to the significant levels of new supply in the property market. According to the report, Dubai has suffered more than other markets due to the greater level of exposure to overseas investment throughout the emirate.
"The region's capital markets are at risk. Banks have stopped lending and are now seeking ways to reduce their over exposure to real estate.
"Developers are experiencing severe cash flow risk from defaulting buyers and a dried-up debt market; investors are waiting for 'blood' before they begin acquiring and many have lost wealth in the stock markets. Meanwhile, sellers' expectations are still too high as they have not yet fully adjusted to the new market realities," the report said.
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