Property prices and rents in Dubai are expected to continue to decline in 2010 due to oversupply and tight liquidity despite an improvement in economic conditions, according to a report on Arabian Business.
"Tight liquidity condition and high cost of borrowing continues to make it difficult for developers to complete projects," said real estate investment and advisory firm Jones Lang LaSalle in the report.
High maintenance and service fees are also impacting investors' net returns.
"With the rate of decline in both values and rentals remaining well below those experienced in 2009, all sectors of the market remain in the late downturn stage of the property cycle," it said.
In its outlook for the next 12 months, Jones Lang LaSalle forecast an increase in office space demand as rental prices decline further and global and local economies expand.
See the full version of this story on arabianbusiness.com.