New investment quarter for Dubai's property market

Investors who raised the value of property in Dubai to record levels in 2008 tended to individuals, now speculators in the form of funds are looking to breathe life back into the Dubai market.

In 2002 the Dubai government opened real estate in the UAE to foreign investors. The years that followed saw individuals buying masses of off plan properties such as flats and villas. Demand out-stripped supply and property values soared.

As those investors today struggle to maintain their grip on their investments, as unemployment and repatriation increase, property values have plummeted and gradually property for sale in Dubai looks to represent growing value for money. However, it is now private equity and sovereign wealth funds that seem ready to cash in, and are actively seeking property to buy in Dubai.

Industry experts are reluctant to value what is described as a distressed property market, except to say that they expect it to be in the billions of dollars. The interest from this quarter of investors was initially in the residential market, but now commercial property is quickly gaining ground.