In the first three quarters of 2008, the construction boom in the emirate, fueled by market speculation, drove rapid price growth. However, the market is now dominated by the following trends: a liquidity crisis, a tightened lending system, and rising negative sentiment. In addition, the rise of the UAE dirham against other currencies and the consequent increase in property prices for foreign buyers have reduced the inflow of foreign investment, reports Prian.ru citing Arabian Business.
As Ian Elbert, head of the regional office of Colliers International, notes, the above factors led to the first decline in the history of the price index.