Dubai tipped as long-term only

Dubai is starting to offer good prospects for investors who can manage cash purchases - but only as long-term undertakings, an expert has said.

Editor of overseas investor magazine BuyAssociation Paul Collins remarked that the world property market is now improving, although he cautioned that a full recovery has not yet been established.

Referring to Dubai - where the decline in prices slowed down in the second quarter of this year - he stated: "This could be a perfect time to go for it because there will be some amazing offers on new developments that are out there."

However, long-term projects are necessary because it is the sort of economy that sees large booms and busts over shorter periods, Mr Collins asserted.

The expert was speaking after the second quarter report in global property prices by Knight Frank.

It showed that Dubai's property prices dropped by 7.5 per cent in the three months to June, compared with 41 per cent in the first quarter.