"Despite the stabilization of prices, buyers do not want to buy property here. Today, people are still willing to take risks "- said Matthew Green, head of research and consulting department of CREA.
Related article: The safest country in the world and their propertyThe peak of the buying activity occurred in early 2007 - mid 2008, when Dubai was launched several huge projects, according to Arabian Business. According to the agency Morgan Stanley, the influx of foreign buyers has boosted prices by nearly 80%. However, the ensuing economic problems and the debt crisis forced the developers to freeze or eliminate such projects. Buyers do not have to take risks and, as a result - cheaper accommodation in Dubai at 60%.
Oversupply, which is characteristic for today's real estate market the emirate, it will delay the recovery of at least several years. Analysts consulting agency Moody's believe that to recover the housing market will only be able to UAE in 2016. "We do not see a recovery in the next five years, and new construction projects are unlikely to be launched on the market as residential and commercial real estate" - noted in the agency.
Experts believe the brokerage AlembicHC: to establish equilibrium between supply and demand would require at least three years. A bank Rasmala experts believe that this will happen only in 2020.