Dubai Property Price Trend – Property Analysts with Divided Beliefs

The impending slowdown of Dubai property sector is something analysts are having a divided opinion about. One group of property experts believe the boom in Dubai property sector will slow down around 2014, while others opine it will cool off within 2 years from now.

According to a Dubai property sector report, the prices of residential units in Dubai will reach their zenith in the year 2008. After that, the supply of homes will exceed demand and hence, property prices in Dubai will possibly touch their nadir by 2011. It is estimated that there will be a dip of about 15 to 20 percent in Dubai property rates.

According to local property analysts, however, Dubai property rates will keep on soaring for another 7 years or so because of a number of factors:

• Property construction delays in Dubai

• Limited supply of new housing units

• Increased demand for Dubai property among foreign investors

• Falling price of Dubai currency – AED (popularly known as Dirham)

According to another assessment of Dubai property, around 181,000 units will be in demand in the coming three years or so. At the same time, only 175,000 new units will be made available in the Dubai property sector by 2010. Thus the demand will exceed supply and consequently the property prices will continue to rise for some more years.