Buyers steer clear of property market in UAE
Wednesday, 8 February 2012 11:22 AM
Horror stories about stalled construction projects and losses for investors have put UK buyers off property in the United Arab Erimates (UAE), according a study by TheMoveChannel.com.
The UAE has dropped 10 places to 22nd on the property portal's list of the most popular destinations for UK property investors and fallen behind other emerging markets like Bulgaria, Turkey and Thailand.
It was one of the regional markets hardest hit by the global downturn, with property prices dropping by up to 60 per cent and half of planned projects put on hold or cancelled.
According to Arabian Business, that has left hundreds of investors who bought off-plan waiting for construction to start and wondering where there money is.
Despite the Arab Spring and a drop in tourism levels, even Egypt ranked above the UAE. That is somewhat surprising, considering the UAE's billing as a safe haven from anti-government protests in the region.
Dan Johnson, managing director of TheMoveChannel.com, told Arabian Business: "There is no avoiding the number of horror stories that have circulated about the UAE property market, from incomplete projects to developers sitting on funds. These have severely impacted demand.
"The media coverage of the Gulf states has also not been hugely positive - in a period where investors are being more cautious than ever, any market that carries a perceived risk is likely to suffer."
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