With so much financial uncertainly now casting a large shadow over the world, speculation as to what will happen next continues to run rife. These are difficult times, with much contradictory information being thrown about. And this is certainly the case in the Dubai real estate market, which has seen contradictory reports on the future of property prices here for some time now. A quick scan of some of the Emirates property headlines reveals one article claiming Dubai property agents believe the negativity of the current market situation is being overblown, only for another article to claim most agents are really struggling in the current financial climate. With the media far from unanimous in their opinions at present, it therefore becomes difficult to get a real understanding as to what is really happening in the Dubai freehold real estate market. However there are some good noises coming from the latest Citigroup report on Dubai property.

The report whilst detailing some of the current realities to befall the Dubai real estate market does go someway to backing the strength of Dubai property, ruling out a collapse in the Dubai freehold property market. Whilst allowing foreigners to buy property in Dubai has opened up all kinds of doors for Dubai and the surrounding Emirates, this plus the large mortgages up for grabs only a few months ago has lead the sector to become somewhat exposed in this difficult time. And with banks now requiring high equity payments on any loans taken out in order to cover themselves, the resulting effect has been a reduction in real estate demand. However importantly the report highlights Dubai’s ability to closely monitor supply to the market as a key factor as to why Dubai can avoid any property crash.

  So whilst the past levels of growth will not be sustainable for the time being at least, careful management of property coming onto the market will play a key role in Dubai property weathering the current financial storm. The report also states it believes Dubai properties to be too important, and to holds too much value to fail in a property crash. Therefore the report, whilst hardly the final say in the matter, does give some substantial backing to the strength and long term investment potential of Dubai property, which can only be a positive thing.