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14 Dec 2009
Whats happening in Dubai
The Dubai dream where property prices once rose 84 per cent in a single year has come crashing down, along with its property prices, as Dubai World, the state-owned developer, asks for a six-month standstill on its debt repayments. But where does it leave those who invested in property there?
Prices fell 47 per cent in the year to September, according to Knight Frank. There are fears that the failure of Dubai World could lead to further falls. Analysts in Dubai warned this week that prices could fall a further 30 per cent. Savills, however, said that while it may take 12 to 18 months for prices to stabilise, he suspects they may have bottomed out. Asstez, are less optimistic. "I think we will see total price falls of up to 75 per cent. I think we will reach the bottom early next year and it could take up to ten years for them to return."