‘subdued' dubai market

The Dubai property market will remain weak to stable over the next year or so and could face further price falls, according to investment bank, EFG-Hermes...

Analysts Sana Kapadia and Jad Abbas of EFG-Hermes said: "We do not anticipate any strong recovery in Dubai selling prices before the second half of 2010 at the earliest."

The analysts also believe that the Dubai property sector will also continue to struggle until liquidity returns to the UAE property market.

The experts do, however, believe that demand for property in Abu Dhabi is expected to improve over the next few months, fuelled by greater mortgage lending activity.

However, the Abu Dhabi property recovery could be short-lived, as cheap homes in Dubai - to both rent and buy - is expected to lure more buyers away from the Abu Dhabi real estate sector.

The Dubai property sector has been hit extremely hard by the global financial turmoil, with prices falling by over 50% across some parts of the emirate.

Source: www.homesoverseas.co.uk/news