Dubai property prices to fall 5pc in 2007
Dubai's soaring property prices and residential rents are expected to drop five per cent in 2007 as supply will finally outstripped demand.
Prices of residential rents and property will hit a peak at the beginning of the year, Standard Chartered Bank said on Sunday according to Gulf News.
"Concerns about a property bubble in Dubai are amongst the top three risk seen facing the emirate," said Steve Brice, regional head of research for the bank for the Middle East.
Brice added that the fall in rents in Dubai will be offset by a rise in Abu Dhabi where liberalization and investment is fueling a boom.
"The good news is that supply is set to grow rapidly in 2007," he added.
Some 52,000 new residential units will hit the Dubai market in 2007 after considering delivery delays, while another 63,000 will be released in 2008.