The Dubai and Abu Dhabi property markets are starting to correct themselves.

I thought everyone said that this market was impervious to the global credit crunch? They said that none of the slowdowns would reach the UAE, as there was such a strong economy here. Of course, what they forgot was that most of the buyers for property in the UAE aren’t UAE nationals – they are foreign investors trying to make a profit, many of whom have never been to the UAE. As their liquidity dries up, and as they try to move into more stable investments (t-bills, precious metals), they will take their money out of the market here. Which means no more flipping of properties here, and in turn means that the crazy monthly gains are going to go away.

I’m not saying that things here are going to crash, or even correct hard. What it does mean, though, is that rent should stop it’s ever-upward climb. Maybe, just maybe, you’ll be able to find a studio in Dubai for less than 100,000 AED per annum.