Though some fear a bubble, it seems unlikely that Dubai’s luxury residential properties will see a major decline in the next year,
A survey of 200 business executives asked whether the area is likely to suffer a correction, but 84% believe prices will not plunge. Investors may recall a dive in 2008/2009.
Joao Cocco, London Business School, Professor of Finance, says, “The vast majority of executives surveyed do not believe that there will be a drastic decline in residential real estate prices in Dubai over the next 12 months. Only 3% of those surveyed expect an annual decline larger than 20%.”
Though some price falling has occurred, almost half of the survey participants said they would invest in the Dubai property market. Many cited reasons for their optimism as the high quality of life in the UAE, and the preference for purchasing over renting.