By Ben Flanagan
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.