Dubai Property Prices 38% Lower than Last Year - What's Next

Colliers international has revealed that Dubai property prices are 48% lower than they were a year ago.

Colliers regional director Ian Albert said:

"The key factor that will really dominate Dubai's recovery will be the global economy, because we are really integrated into that," he said. "Dubai's recovery as a business hub will depend on what's going to happen in Europe and the US."

Apparently up to 9 out of 10 Dubai residents are foreigners dependent on continued employment in order to stay in the country. As unemployment continues to climb the population will therefore get smaller, and the property market will suffer.

It is hard to see where recovery will come from; especially with the crash fresh in everyone's mind -- to me it is fair to say that Dubai won't be a popular place for foreigners to buy property until we have all forgotten how horribly buying property in Dubai can go for foreigners.

In the other hand, prices are lower than they have been for two years, if, as I have written previously Dubai can find a way to reinvent itself then maybe next year could be a turnaround year, but it will need to be a serious reinvention.