Political turmoil in the Middle East and other Gulf regions will be a boost to the property market in Dubai and Abu Dhabi, it has been suggested. According to a poll by Reuters, many investors view the emirates as safe havens for investment amid the troubles.
But prices in Dubai are set to plummet another ten per cent before they stabilise, while prices in Abu Dhabi will drop another 20 per cent.
The news provider explained that Dubai will see prices decline a total 65 per cent from their peak. They will fall by five per cent in 2011 and another one per cent in 2012, the poll added.
"Regional unrest highlighted again Dubai's status as a safe harbour. We expect foreign money in some of these countries to be withdrawn and reinvested in Dubai. The real estate sector could benefit from this," said Nabil Ahmed, real estate research analyst for Deutsche Bank.
The poll, which took the opinions of banks, investment and research firms, also found that Dubai's real estate market is oversupplied, which is putting pressure on the prices, a median of eight respondents indicating it is 28 per cent over supplied.