Since 2008, despite the fact that property prices in few areas have shown good recovery, the condition of Dubaireal estate sector has remained abysmal. One group of experts still believe that better times are quite far because very soon Dubai property prices will experience a double dip. This predication is making experts to think that that there would not be anything to cheer aboutDubai real estate in the near future.

The slow down of the rate of the deceleration of property prices has shown that Dubaireal estate still holds potential to fight against oversupply and recovery would just take another year to kick start. Believing in the performance of the Dubai properties in 2011, one group pf experts are predicating marginal declines in property prices in the New Year 2012. This is because though almost 10700 apartments and 1300 villas are expected to add to the market in the next six months yet this supply would be steady and will match with the rising demand to bring more stability in prices.

Because of the regional unrest in other parts of the world, worldwide foreigners including those from the Arab countries are expected to raise the demand of the properties through out all the areas ofDubaiin the next year. Only the demand in poorly managed and low quality buildings is expected to remain less in few localities which can bring overall minor declines in property prices.

The strong signs of Dubaireal estate moving towards recovery have been noticed in all the four quarters of the year 2011 due to increased number of real estate transactions. If we look at the Dubai rental market, we will notice that the rentals have increased in all the prime areas ofDubai exceptInternationalCity, which showed slight decrease in rental rates. This overall better activity in 2011 has let experts to think best performance in 2012. They are of the view that even if the prices will fall, this decrease would be marginal.