Dubai Property Prices – Scenario until 2010

Property rates of residential units in Dubai are all set for a downfall, but only in 2009. Due to a slow pace in the coming up of new property projects in Dubai this year, the impending plunge in property prices in the emirate has been delayed. In the current scenario of Dubai property market, the residential property prices will soar to their zenith, possibly by the later half of 2008 before falling down. In other words, the prediction made by Dubai property analysts last year that property rates in Dubai would fall in 2008 has been put off for another year.

2007 has been a slow year in terms of the number of completed projects handed over in the Dubai property market. Of the estimated 57,000 property units due to be completed, only 11,000 have come up so far. The supply-demand ratio of residential property units in Dubai has to be revised in order to accommodate the estimated 25,000 residential units for 2007, 64,000 for 2008 and 68,000 for 2009. The demand for residential units in Dubai has been on the rise and will continue to do so in direct proportion to population growth in the coming years. By 2010, the population of Dubai will be around 2 million and to meet this demand, on an average 45,000 housing units are required every year.

According to Dubai property market analysts, property rates will soar by 10-15 percent and 5-10 percent in 2007 and 2008 respectively. By 2009, property prices in Dubai will begin a downward journey resulting in a cumulative dip of 15-20 percent by the year 2011.

Having said this, a lot depends upon the delivery of completed housing projects in Dubai property matrix. Moreover, the much talked about property boom in Dubai is expected to continue at least until the end of the decade.