A recent Dubai Chamber of Commerce and Industry study reveals that prices in Dubai's real estate market have declined for the last two years due to oversupply in residential units. This is also seen as the main factor behind further declines in rents and prices of properties according to experts in the local real estate market.

Nonetheless a robust rebound is expected at a slow pace as it may still take 2011 and the first quarter of 2012 for the sector prices to bottom out, states the study. Based on the price index and supply of units of Dubai's residential real estate sub-sector in 2010 and its outlook in the short term, published by Colliers International and Jones Lang LaSalle and others, the study reveals that completion of world class infrastructure and a business friendly environment over the last two years will be among the main factors behind the creation of more demand for Dubai real estate. Read More