Property future not so sunny in the Gulf

Property markets throughout the Gulf region are likely to remain subdued for the remainder of 2011 according to recent data.

Experts suggest that oversupply in many markets including the United Arab Emirates will see property prices and rents fall as developers concentrate on existing properties rather than expanding into new developments across the region.

A shortage of available mortgage finance and the imbalance between supply and demand has caused the market to stall and the hardest hit areas have been at the top end of the property market.

Some industry commentators believe the property industry in the Gulf is ready for a shake-up, already Saudi Arabia are investigating possible ways of introducing new legislation to introduce mortgage finance products. Another suggestion is that real estate companies based in the Gulf may adopt real estate investment trust status.