News | January 19, 2010

Luxury Real Estate in Dubai is Set to Fall Another 10 Percent

News | January 19, 2010

By Lauren Coto

Financial recovery isn’t in the cards for Dubai. The debt crisis is set to cause prices to drop even further this year. Prices have already dropped over 60 percent and are continuing to plummet with the lack of investors in the market. The consensus is that prices will fall about 10 percent this year and another 3 percent in 2011. With the vast amount of canceled of projects and over 32,000 units up for sale, price weakening is probable in Dubai. There is some good news though. The British Government Inc. has managed to support the increase in prices by preventing banks from making repossessions, cutting interest rates to the bone and printing billions of extra money, which has sustained sales volumes. Hopefuls are anticipating a recovery in 2011.

Via: Luxury Property