Dubai’s property market dwindles

Is the downfall of Dubai, known for its sprawling and lustrous property market once, is imminent? Is it also true that the staggering population of Dubai, one of the seven emirates and the most populous city of the United Arab Emirates (UAE), is dwindling? Well, if the study reports are contemplated, this may be true, however cruel it is. There is no doubt that Dubai, located along the southern coast of the Arabian Gulf on the Arabian Peninsula, was considered as the real estate capital of the world owing to its magnificent projects. What has been the wrong that may make Dubai perceive decline by 8 per cent in its population?

According to the investigation, the main perpetrator is the slowdown in the property sector. This report, in details, has been prepared by the researchers at UBS investment and states categorically that the stark reduction in population may give rise to a host of problems. The prime of them may be a surfeit of housing and if it ever happens, the deterioration in home prices will know no bounds. However, the report states, that the home prices may fall by 30 per cent on average in the next two years.

The researchers stated, “A slowdown in the housing market in addition to challenging macroeconomic conditions may lead to fewer foreign workers moving to the region for job opportunities and fewer investors engaging in local investments, including real estate assets.” Now let us concentrate on the reason of this downfall of population. The gradual declension or deterioration in the property market has already compelled several property companies in Dubai along with several places in the Emirates, whatever may be the status of the companies, to delay projects, contract marketing budgets and also to lay off or furlough a considerable section of the workforce.

According to the report, this situation may continue further and in that case the property-related labour force will be declined by 20 per cent this year and 10 per cent next year. This may lead to the further degradation in property prices. This is certainly not desirable but at times people remain helpless. Whatever it is, the prospect of the property market in Dubai, for the moment, appears to be dreary.