According to the research, studying future prospects for the real estate market in Dubai, conducted by London Business School, no sharp decline in the pace of development, nor any rapid declines in prices is likely to Dubai real estate market in the near future.
Despite the recent forecast of the rating agency Standard & Poor's, which predicts a decline in Dubai property prices before the end of this year by another 20%, this survey respondents asked by London Business School, in the majority have the opposite opinion. 84% of the 200 survey participants, including business executives and this school graduates with an MBA degree, do not believe that Dubai faces a recession similar to that of the 2008.
As for the predictions of growth or decline in housing prices in Dubai during the next 12 months, respondents' opinions are split almost evenly: 50% believe that prices will fall, and 47% - that prices will remain stable or will rise. However, two-thirds of respondents believe that Dubai property market gains the signs of maturity, therefore, in any case, we shouldn’t expect the same further rapid rise in prices, as it was in previous years.
However, none of the respondents of the London Business School survey agreed with alarming rates of 15-20% price reduction predicted to Dubai by such analysts as Standard & Poor's and others. More than half of respondents believe that a fall or rise in prices in any case, will be within 10% of the current value of the property, 31% said that the price reduction will be less than 10%, and 20.5% of respondents are even so optimistic, that forecast for Dubai prices increase by more than 10%.
Thus, 47% of businessmen surveyed admitted that they were going to invest in Dubai’s property in the near term, and more than a third named strong economic performance of Dubai and the good prospects for economic development of the emirate as the main reasons for their confidence in a stable property market here.