Property market in Dubai 'may face oversupply problems'

With many developments soon to be completed, there is a possibility that the property market in Dubai could face oversupply problems.

That is according to a spokeswoman for Property Frontiers, who said that Dubai's property market could be in danger of "overheating" due to the large number of new residential projects.

She went on to say that this problem could potentially be eased by increased demand if the population were to continue to grow, although she asserted that this was unlikely to happen.

The spokeswoman commented: "There are worries that the property market may be overheating as the mass of developments which have been built in Dubai over recent years reach completion.

"If Dubai's population continues to grow at the phenomenal rate of five per cent (something which is unlikely) the market will be fed with continued demand and might be able to stave off oversupply. If not, it is likely to suffer."

Overseas Property News posted on 25/04/2008 09:09:22