Credit Suisses’ latest “MENA Equity Strategy for H2″ report predicts an “inevitable” long term recovery for Dubai sometime around Q4 2011 or early 2012. The bank doesn’t see 2010 as a “recovery year”, blaming both Dubai’s debt issues and “excess supply” as the key drivers which will stifle economic growth and apply continued “pressure on asset prices” certainly until the end of the year.
How quickly the anticipated long term recovery depends largely on the rate at which supply is absorbed by the market – but the report thinks this will be anytime between the end of 2011 or the beginning of 2012.
The report also predicted rosier long term prospects for the Abu Dhabi real estate sector, citing lack of quality commercial and residential properties as key drivers of demand until 2013. As supply increases, the rents will come under pressure which will lead to a tightening of the price and rental gap between Abu Dhabi and Dubai.Paul Holdsworth, Staff Writer, Gulf Jobs Market News