Property experts have claimed that Dubai is one of the riskiest countries to invest in property at this time. It is claimed that the oversupply and declining population means that the Dubai property bubble is likely to burst in the near future meaning many property investors will lose money on their investments.

Some have likened Dubai’s current housing market to Hong Kong’s market at the start of the decade when it experienced a housing crash, and also draw similarities to Singapore and Ireland who have a history of boom and bust cycles in their property markets. Between 1997 and 2003 Hong Kong saw many real estate prices plummet as much as 70% meaning many property investors lost a lot of money in a very short space of time.  Read more... (200 words, estimated 48 secs reading time)

Dubai’s Real Estate Regulatory Authority have announced that they are planning to become an international real estate reference point. Named Menares – short for the Middle East and North Africa Real Estate Society – they are looking to establish a professional real estate market body.

Menares are planning to be a reference body only, not a regulatory body and are hoping to be able to assist any country that falls under their framework. Rera have recently joined four other organisations (the International Real Estate Federation, the World Association of Valuation Organisation, the Royal Institute of Chartered Surveyors, the Asian Public Real Estate Association and the Urban Land Institute) who are responsible for regulating real estate affairs therefore it is little surprise that they are looking to expand their reach further.  Read more... (187 words, estimated 45 secs reading time)

State owned developer Nakheel looks set to receive more financial help from the Dubai government as house prices continue to fall in the country.

Nakheel has already received loans through Dubai’s bond scheme – a bail-out scheme worth $10 billion which was launched back in February – as they have seen liquidity problems thanks to house prices falling and a stagnant real estate market.  Read more... (173 words, estimated 42 secs reading time)

Dubai’s Real Estate Regulatory Agency (Rera) has announced that new property developers in the country will no longer be allowed to sell off-plan properties without paying one hundred percent of the land price. New developers will also be obliged to use a part of a project’s value to get construction under way as well as linking payments to construction. These new regulations are set for introduction in March 2009.

A new ‘cool off’ law is also set to be introduced. This law will give property investors a 15 day window in which to decide whether to commit to a contract on a property or not.  Read more... (110 words, estimated 26 secs reading time)