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Mon 22 Jan 2007 11:44 AM

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Real estate boom time is ticking away

Increased supply of residential units will see property prices in Dubai ‘soften', says report.

Demand will fall significantly short of supply in Dubai’s residential property market leading to a ‘softening’ of property prices, according to a recent report.

A minimum of 125,000 residential units will be released on to Dubai's property market in the next three years, according to a study by Shuaa Capital and Colliers International and cited by Gulf News.

The report predicts that 71,800 units will be released this year, a further 43,000 in 2008, and 10,600 in 2009. This surge in supply is expected to exceed demand.

This will hit the high-end apartment sector the hardest, where – according to the report – supply will be more than twice the demand. However, the mid-end apartment sector is expected to fare better.

In Abu Dhabi – where it is currently very difficult to rent an apartment – the report forecasts a continued shortage of supply in the next few years.

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