Tuesday, February 01, 2011

UAE property market bottoms out; Recovery by end of 2011

The UAE real estate market has bottomed out and will begin showing recovery signs towards end of this year, said Sultain Al Mansouri, the Minister of Economy.

The worst is over for the UAE realty market, and by the end of 2011, a positive movement is expected, he said.

Although, the growth graph will not be at the same levels as before, the market will surely witness a gradual and realistic growth, Al Mansouri confirmed.

Mansouri said the concern about a possible oversupply situation has weakened, with several project cancellations thinning down the real estate pipeline.

Several of the issues that the market faced in 2010 is now resolved with several projects being either re-designed or stopped. Hence the market is better organized, offering a relief from a possible oversupply situation, he pointed out.

As for economic growth in the UAE during 2011, it will surely witness growth and a positive one, although every aspect of global economy cannot be predicted in advance, Al Mansouri said.

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