Political and economic security in the UAE means that it has emerged as a safe haven for investment over the past few years. This has been further bolstered by the recent turmoil within the wider MENA (Middle East and Northern Africa) region.
International property specialist Chesterton has noted an increase in interest in the region in recent months. Despite the effects of the global downturn on property prices, there remains a strong fundamental confidence in the market and its medium to long-term prospects, the firm added.
"The general consensus is that the Dubai markets are close to bottom of the downward cycle as supply reduces across all asset classes over 2011," Simon Gray, managing director of Chesterton's MENA operations, said. "Abu Dhabi is still witnessing a strong supply chain meaning that both cities are witnessing continued downward pressure on both price and rental levels, giving investors further pause for thought."
Mr Gray continued, stating that many investors are looking at the downward pressure on prices in Abu Dhabi and Dubai as a window of opportunity and are generally confident that the market fundamentals are strong.