Dubai fears allayed

Fears of a property market slowdown in Dubai have been allayed by experts, despite some commentators suggesting that the market will level out by 2009.

It is thought that price growth will slow to 8.5 per cent next year after regularly reaching two digits annually since 2002, but that a dramatic change is unlikely, reports Arabian Business.

Bikash Rout, senior financial analyst at Global Investment House, commented: "At the worst we could see a soft landing, but a sharp correction in the Dubai market is far-fetched."

He added that the emirate currently needs between 30,000 and 35,000 units each year to keep up with the seven per cent annual growth in population.

A poll conducted by Reuters found that there was only a 32.5 per cent chance that there would be a correction in the Dubai market.

Another recent report suggested property prices in Dubai are set to rise between five and ten per cent during 2008, as demand is still unfulfilled due to delays in developments and housing projects.

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