Dubai house prices set for 20% fall, investment bank predicts

22/07/2011 - Dubai Property News Posted by Bob Brunskill
Dubai house prices set for 20% fall, investment bank predicts

Dubai house prices are expected to decline by 20 per cent over the next couple of years as 35,000 additional homes are delivered to the emirate by 2013. That is according to research by investment bank Rasmala, quoted in Emirates 24-7, which revealed that existing house stock is set to rise by around 10 per cent with the increase. This could be interesting news for people considering property investment in Dubai, with prices getting cheaper and more to choose from. Rasmala's report added that Abu Dhabi could also be popular when it comes to property. "Although we believe Abu Dhabi will retain a certain premium over Dubai in terms of rents and house prices, both emirates markets are largely correlated in our view, given a similarity in demographics (80 per cent-plus expat community), marginal mortgage financing, substitution effect and meaningful supply-demand mismatches between 2011 and 2013," it said. It comes after the United Arab Emirates' economy was predicted to grow by 3.3 per cent this year by the Arab Monetary Fund.