Dubai’s housing market – avoiding another bubble

ENAR

The Dubai property market has experienced a rollercoaster ride in the last six years. After growth skyrocketed in 2006, Dubai became the envy of the world as the likes of David Beckham and Hollywood stars invested heavily in high-end luxury projects with prices comparable to New York and London. The housing market reached its peak in 2008 and then crashed by roughly half in 2009 as the international community watched in disbelief. The market’s crash came hand in hand with the global financial crisis, but in comparison to other cities’ real estate markets, Dubai was more severely affected — many commentators argued that it would never recover. The market is now experiencing a resurgence — the gradual recovery started in 2011 and has continued unwaveringly. Property prices are rising strongly and the overall economic outlook of the UAE is fairly robust. According to Jones Lang LaSalle (JLL), international property consultants,