EXPERTS FORCAST
A recent report by financial services firm UBS has predicted that property prices in Dubai could drop a further 30% over the coming 18 months as the sector absorbs new supply coming online coupled with damaged investor confidence in the market due to the cancellations or postponements of a number of projects and a decrease in population in the emirate.
The UBS report predicts that prices will fall from the current average of Dhs900 per square foot, down almost 50% from Q3 2008, to approximately Dhs650 per square foot. From a trough in 2011 the market could expect to see 'only modest growth' in prices, with investors having to wait up to a decade for a return to 'peak' pricing.
UBS is estimating its figures by forecasting a population drop of 8% in 2009 and 2% in 2010, resulting in 30,000 empty units. This, added to estimated existing vacancies of 20,000 units and approximately 40,000 units scheduled to come online over the next 18 months, would result in excess residential supply of 90,000 units. .
wha is arra going to do with
wha is arra going to do with projects & developers which are not register yet? what will happen to such projects investors payments?do they loose their money or the government suport them?