UAE in property bargains prediction

The price of property in Dubai is expected to fall by 20 per cent as the market is oversupplied, an expert has claimed.

JP Grobbelaar, director of research and advisory at Colliers International, was reported in Business Intelligence Middle East stating that the drop in property value was "not unrealistic".

He added that there is a 25 per cent oversupply in the property market.

Prices have already fallen by 48 per cent in the last year and one in four properties are unoccupied.

"Unless there is significant growth in population over the coming two years, we expect the oversupply to remain in the foreseeable future," Mr Grobbelaar remarked.

According to the real estate broker Chesterton, property investors have been taking advantage of the falling prices to make investments.

Brendan Coakley, managing director at the broker's Middle East division, said international and domestic buyers had been making long-term investment decisions and purchasing while the property was at the bottom of the market.