I believe after every recession, there is always a period of good growth. No body can exactly predict the future so I cannot say exactly if prices will exactly touch the same level or cross it. Yet this is for sure that rise in prices is obvious. Conditions have already started to improve in Dubai and in many areas stabilization and recovery has been seen in 2010 and 2011. The wave of increase in prices has started and it will take some time before this wave will spread in the entire Dubai. I expect a good recovery in the prices by the end of 2013 or 2014.
However, it is only an estimate. Lets see what actually happens in the coming years.
As Madiha has already mentioned that no one is sure about when the prices will be back to the same 2008 level. Either it will be back or not even but as per experts' advice Dubai is a long term investment for wise investors. As the prices are low right now but the properties will rise again once the economic conditions turn out to be good. Dubai Government has been taking steps since the beginning to make everything alright. The results will be promising.
There are few areas in Dubai where the prices did not see incredible fall and it is expected that recovery wave will soon spread throughout Dubai. No one can predict exact future so i cannot mention any specific time for the complete recovery. However, it will happen.
I am of the same opinion as Madiha and Arub. Its difficult to predict when the property prices will reach the 2008 level, but as I have been saying again and again, Dubai and the rest of UAE now is a long-term market.
You need to give several years to get the maximum return from your properties. Before 2008, property prices were nearly doubling every year to 2 years. We will perhaps not see this trend for a very long time. Its a more mature market now, with better laws, more control by the land department, however still the investors confidence is low as it was shattered by the crash.
It will take time to build up the confidence, get things back on track, however the signs of recovery are looking good and as the business activity increases, more and more people are going to see towards purchasing their first home. First time buyers are the backbone of any real estate market and this is what is going to determine stability and strength of the market.
Rental prices have been decreased since 2008, however this year the fall has been 5% as compared to previous years, when it was nearly 19%. this is a good indicator confirming that the market is firming up a little.
The market is still quite attractive for built-up communities where the investors are showing greater interest. So these areas will always remain hot spots in terms of investment. All in all it will be a slow process, however certain sings of recovery are there and in the long run the market will reap its fruits for the investors.
Hope this helps and Inshallah things will work out for the better.
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