According to London-based property adviser Mohammed Kashani-Akhavan, the current cancellation of development projects is likely to reduce supply, thus resulting in existing properties increasing in value in the future.
Dubai-based Meraas Development, which has unveiled a $95bn (£63.8bn) property project since being formed just two months ago, is the latest construction firm to announce that it is now reconsidering its plans in light of the economic slump.
Another Project, Trump Tower, a £535m scheme planned for one of Dubai’s palm-shaped islands, is another scheme to have been suspended in recent weeks.
Kashani-Akhavan, who has 27 years experience in property investment said, “It is a great time to invest,” he remarked, adding that in order to become a successful property investor the best tactic is to “buy low when everybody else is selling”.
He also stated that the emirate’s “capable and committed leadership” is well-positioned to ensure a successful future for Dubai, noting that it has already helped turn the city into one of the “most important in the world”. “That should give investors every confidence in Dubai’s future prosperity”, He added.
Peter Cooper, author of the book Opportunity Dubai, making a fortune in the Middle East, said there is a much better argument to be made for buying at depressed prices In Dubai than in the UK or even the US.
‘Real estate price falls may already be fully priced into the market in the United Arab Emirates, while prices are still heading down in the UK. It is a feature of emerging markets that price downturns are swift,’ he explained.
‘This is a tough one. Oil prices could fall further in 2009 and the UAE economy lags oil price falls by six months or so. Could a fall in the US dollar attract back the UK and European buyers who have fled since the summer?’ said Cooper.
But he concluded that the UAE has to be a good choice for the future.