By the end of 2012 the reduction was still 20%. This is illustrated by the company Landmark Advisory. With such forecast experts agree, and Jones Lang LaSalle and Cluttons LLP.
To date, reduction of prices was more than 60% compared with the peak values of 2008. Already by the summer of 2011 prices could fall another 5% -10%, according to Bloomberg.
Cause for such predictions is that offer on the housing market in Dubai is well ahead of demand. In the next two years in the emirate is possible to market to 48 million homes.
Price slump in the commercial property market in Dubai will be uneven. As suggested by experts in the first place will stop falling prices for hotels.
According to market participants, in order to stabilize the situation in the region, it is necessary to attract foreign buyers. It is the activity of foreigners has been linked to the booming real estate market in Dubai, which accounts for 2007-2008 (during this period, prices rose by 79%). However, in 2009, there was the fall of the market by undermining investor confidence.
A year ago the situation was partially stabilized the financial support of the government of Abu Dhabi, but in November 2010 in the financial markets created new concerns about the debt of the Government of Dubai.
In addition, in 2009, the amendments to the visa regulations for foreign property owners in the emirate. Previously, foreign homeowners received a special visa for a period of six years. The procedure for extending its validity was almost formal.
However, in May 2009, changes were made in accordance with which the validity of such visas is reduced to six months, and for its extension was necessary to leave the country and pay a fee of 2,000 dirhams ($ 546).