The Dubai Expat Diaries

Experts from Investment Bank Morgan Stanley claim that research indicates the new flood of apartments to hit Dubai may cause prices to plunge by upto 10% by as early as 2010.

The National also included this in it’s news report:

Dubai property prices have soared 79 per cent since January last year, fuelled by a growing population of expatriates, speculative investments and rising construction costs. In 2009, however, an “excess planned supply” could trigger price declines that will culminate in 2010, the report found.

The emirate’s worst-case scenario would mimic the downfall of Singapore in the 1990s, when prices declined by 80 per cent, the report said, adding that such an event in Dubai is a “low-probability”.