Drastic property market correction in Dubai is unlikely
A large majority of business executives believe a drastic property market correction in Dubai is unlikely, according to a marketplace intelligence survey by London Business School.
The survey, conducted with more than 200 business executives to analyse Dubai’s booming residential property market and the possibility of another real estate ‘bubble’, revealed that 84% of respondents don’t believe Dubai property prices will plunge in the same way they did in the 2008/9 market correction.
Despite speculation from real estate analysts across the UAE and the wider region about soaring property prices and the risk of another speculative property bubble, almost half (47%) of respondents would invest in the Dubai property market. More than a third cited a strong economic outlook for Dubai as their main reason for investing.
Other reasons included high rental yields for Dubai properties and personal reasons, including the high quality of life in the UAE and preferring to purchase instead of renting. More than a third (44% respondents) said greater restrictions on real estate supply would most effectively limit market speculation and prevent a future real estate bubble.