Cheaper properties to be found in Dubai due to oversupply
16 October 2009
An oversupply of properties in Dubai is expected to cause prices to fall by 20 per cent, according to research firm Colliers International.
Business Intelligence Middle East reported the research, which also revealed that one-quarter of all homes in Dubai are empty.
JP Grobbelaar, the director of research and advisory at Colliers International, told the publication that there was a "concern about oversupply in the market".
He added that the price decrease was expected to continue and this would continue for the "foreseeable future".
Rent costs are also dropping having already fallen by 49 per cent in the last year.
"In the commercial sector we expect the price drop to be even worse and we don’t see any economic drivers that will cause the prices to increase," Mr Grobbelaar remarked.
His comments come after industry figures commented at the start of October that Dubai was recovering from the property slump.
Real estate broker Chesterton claimed that international property buyers were making investment decisions and acquiring property in Dubai while prices were low.