Well known real estate company Cluttons international has taken the bold stance of predicting a recovery in the Dubai property market in 2012, which they said will enjoy a "brisk start".
So confident is Cluttons that activity will be brisk in Dubai this coming January, the firm has employed ten new staff members.
This is a particularly bold stance coming now as the Eurozone crisis seems to worsen by the day, and we begin to see, for the first time talk of it actually collapsing. This is still thought to be impossible according to most analysts, but some articles going for the shock and awe approach have hinted that banks may be starting to think about what if scenarios for this.
According to Cluttons, Dubai ends this year with more positivity than has been seen for the previous three years. The firm says that the high end residential sector has benefited from the capital shifts caused by the Arab Spring, while commercial occupiers are seeing the benefits of the savings they can make in Dubai's tenants' (buyers;) market. It says that where prices are still falling they are falling slower.
If you look at it pragmatically, most markets now face downside risks from the continued violence in the region owing to the Arab Spring, the Eurozone debt crisis and continued weak global performance. Dubai doesn't really have anything to lose, but everything to gain, and it is a market with all the attributes of the Middle East, but none of the Arab Spring troubles.
According to Cluttons Dubai is also a much more mature market now, with buyers buying based on specification, finish, location, amenities and a sense of community rather than the speculation seen at the height of the boom. Likewise tenants are also being more flexible; willing to accept less rent and a good tenant, than a large void or bad tenant to maintain higher rates.