Words: Ashley Rigg
Published: 28th September 2009
Middle East distressed property hotspots
The Kuwait Financial centre (known as Markaz) is warning against buying distressed property in Dubai and Bahrain despite huge recent price falls and the creation of a number of distressed property funds focusing on Dubai.
Markaz tips Abu Dhabi, Qatar and Kuwait as offering the best distressed property opportunities due to the relative under-supply of residential units.
Markaz warned Dubai and Bahrain’s exposure to real estate and financial services, which account for around 25 percent of their GDP, left them vulnerable to prolonged price stagnation, potentially diluting returns for years to come.
Prices in both Dubai and Abu Dhabi have fallen around 50% since their 2008 peaks.
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