Dubai Property Market Crash
There has been a lot of activity in the property market of the Emirate of Dubai. It is therefore a valid query if we are currently experiencing a Dubai Property Market Crash in 2016. This post is being written in very early 2016, so it is really a reflection of the Dubai property prices of 2015, or at least the latter end of 2015 in any case. These are likely, however, to extend into Dubai Property Prices in 2016 for at least some period.
For foreign investors, such as those from the UK, Dubai is a relatively youthful market. It has only allowed foreign ownership since 2002. In that period it has experienced a huge boom, up to 2008. This was followed, as is normally the case, by an equally huge crash. The market recovery in Dubai was pretty swift by international standards. There are commentators who point to a meaningful recovery in prices by the end of 2009. In any case, by 2012 things had really picked up and by 2013 it was looking like the boom was back with a vengeance.
Then the government stepped in. It took a range of measures to cool the rapidly re-heating market with considerable success. By 2014 price rises in Dubai had begun to slow. By 2015 many commentators were calling a huge crash all over again. Property prices in 2015 had dropped by a staggering 15% in just one year.
The reason I’ve gone through the historic timeline here is to put a little perspective on where the Dubai market stands now, at the beginning of 2016. Is it in the middle of a boom, almost certainly not. Is it in a full scale crash, probably not either. The truth lies somewhere around the middle ground. It wouldn’t take a lot to shake confidence and create a full scale crash, but it doesn’t look imminent. The supply coming to market is a little worrying, but developers seem to be keeping somewhat of a rein on it for the time being. This is helping.
Is it time to buy or sell? Who knows? We don’t have a crystal ball any more than anybody else does. Here at SellDubai.co.uk we try to sell Dubai Property for people no matter what the market conditions. We can’t change what the market does, unfortunately.