Supply & demand reality for realty

The fall in the value of real estate in the UAE is remarkably being seen as a good thing by some industry experts, in that it now concentrates market attention on the basics of supply and demand. Market recovery is undoubtedly going to take years rather than months, and any investor entering the market has to do so with this in mind.

A spokesman at Colliers International recently commented that the downturn in the market place for property in Dubai and Abu Dhabi had been exaggerated by highly speculative activity before the crash. High value extravagant projects were agreed upon and initiated without necessarily the demand being there.

The market place is over supplied, and with levels of unemployment in the UAE rising & the exodus of the workforce that implies, demand could be a long time coming. Investors now are able to sit back, take their time, and peruse the property sector for ultimately the best deals.