Property within the UAE has experienced an upswing over the last decade, fueled by the Dubai property market that came from nowhere to hit unbelievable highs, before crashing and burning desert safari tour. A lot of professionals in the property industry were pushing the UAE property market ever higher, and when the economic crisis in the world began there were those who thought that the region was immune to the chaos. How wrong they were!

The Dubai market for property

Even though Abu Dhabi has more prominence and more power in the area, it was the Dubai property market that caught all the interest of financiers as well as the financial press in the last decade. This market has risen dramatically from a relative low and then continued to grow as overseas investment and overseas demand continued to mushroom. While some experts expressed their concern over the rate and amount of property prices in the region, many investors continued to pour money into the industry.

When the global economic downturn began to take a toll on the US, Europe, the UK and the Far East we saw many former investors in the UAE real estate market return their capital to pay for the loss elsewhere. The tiny influx of buyers soon turned into the size of a tsunami that caused a dramatic price drop, put an enormous strain on the financial system in the region, and resulted in those in charge of the Dubai authorities with an enormous amount of debt.

UAE property to be developed in the near future

As we mentioned above, Dubai tends to get the vast majority of the international financial headlines in the press , despite the fact that in many ways Abu Dhabi is more influential in the region. It is not accurate to think that property prices haven't risen across the board but actually, the Dubai property market has pushed ahead than any other market in the UAE and, in the end, continued to fall. Prices of properties in Abu Dhabi have performed much better than those in Dubai and we are starting to see evidence of an international increasing demand for UAE property.

The Dubai authorities made a number of grave mistakes in the period when they realized that the Dubai economy as well as the Dubai property market , in particular were at a high. They continued to invest large amounts of money during times when the demand began to decline and investors began to repatriate their funds. The reality is that they Abu Dhabi authorities were forced to help the Dubai authorities simply to stop further declines and to prevent a decline in confidence in the region.

Conclusion

The Dubai property market could in the years to come, create an ideal blueprint for what is known as a "property bubble" whereby investors seemed to be blinded by the possibility of profit while ignoring the dramatic rise in costs and the sluggish demand. In a similar fashion as King Canute and his effort to repress the sea Some investors in Dubai also suggested that the region will not be impacted by the worldwide economic downturn and would continue to attract overseas investment

The property market in the UAE has started to stabilize and there is evidence of interest coming from overseas companies and overseas investors again. Whether we will see the increase and decrease, at paces that are reminiscent of the Dubai property market, in the near future is yet to be seen because many investors have had their fingers burnt and are more cautious this time.