April 23, 2009
Dubai house prices will fall by up to 70% from their peak levels, says Swiss investment bank UBS. Having said that, we have seen prices for property for sale in Dubai already down to these levels, so this may actually be an optimistic outlook. There is a good argument that Dubai’s luxury property market will never recover, given the underlying fundamental issues – Pollution, falling expatriate populations, lack of laws to protect small investors, and an almost total lack of transparency. Top this off with the liquidity crisis in the financial system, and you have a recipe for disaster.
