Dubai property and real estate still promising in global crisis

As the effect of the global crisis a slight slowdown of rental growth during the first half of 2008 will not last for long, according to Dubai property experts. In a recent report by Asteco, one of the UAE's largest property services firms, rental growth in the 12 months to June this year has been a modest 22 per cent, with the vast majority of this growth occurring in the last half of 2007. Andrew Chambers, the managing director of Asteco, said the slowdown in residential rents in Dubai property, first observed at the start of the year, continued from April to June. "No significant residential rental increases were observed over the past three months.

on the other hand as real estate in Europe and the US heads towards a prolonged downturn, property prices in Dubai are heading in the opposite direction on the back of the surge in crude oil prices around the world, with prices of property for sale in Dubai rising by over 75% during the first half of 2008. Oil prices have gone up by almost 50% in the first half of 2008, compared to 57% during all of 2007, with current prices around $145 a barrel, compared to just $60 a barrel in early 2007. Goldman Sachs are forecasting oil prices will rise to between $150-$200 a barrel over the next six to 24 months