Tumble weed future in Dubai desert?

The breadth of property in Dubai is perhaps wider than any other real estate market in the world. However, according a recent report by Japanese bank Nomura, much of Dubai’s business property is destined to become hollow as the population declines.

The global sting has left Dubai with a dwindling workforce as the unemployed return home. The bank’s findings are such that the reverse needs to be stopped and some extra 100,000 positions need to be created to maximise the use of the mass of property due to come on line by 2011.

Business real estate in the UAE has varying occupancy, with 5% of office space empty in Abu Dhabi & 25% currently empty in Dubai.

With extra projects due for completion in the coming months, occupancy rates will seem to decline further and rents will suffer.

Testing times are ahead for business investors already committed to their projects. For the wiser investor the best advice surely has to be sit back, wait and watch.