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The impact of the world recession on Dubai has been dramatic. This contemporary oasis which was once an inspiration to the world on so many levels has been dealt a heavy body blow losing the proverbial wind from its sails.

The body blow, Dubai can deal with, but the mental scars may last longer. However, with property prices down on average by 30%, there is strong speculation that Dubai will experience a healthy resurgence as monied investors take advantage of the weakened market.

Oliver Hickey Managing Director of Nexus Development Ltd said, “When markets fall as dramatically as Dubai has in such a short period of time there are always speculators that are keen to take advantage and with property prices now attractively priced we will start to witness some renewed interest in Dubai as investors take up the baton. Although this will boost confidence and graphs will fluctuate vertically albeit temporarily, we must still be realistic, these investments will not come anywhere near to the overall investment that Dubai was experiencing this time last year. Prices are still bottoming out; although the general consensus of opinion is that they are near their lowest now. Bit by bit the market will bounce back and by early 2011 I think Dubai will be one of the healthiest property investment markets in the world. ”

The sudden demise of the Dubai property market does have its benefits, although at this stage it is still difficult for many to comprehend. Many of the weaker developers will not survive the transition period of price restructuring over the next couple of years. Already we have witnessed countless projects that have been cancelled or delayed. It’s almost fair to say that there will be a cleansing of the industry and ultimately it is future investors who will benefit from this.

Oliver continues, “As a specialist development consultancy in the Middle East that deals with everything from planning through to final build, we have experienced a high number of enquiries in recent weeks from developers looking for viable options to profit from existing land acquisitions. Our conversion from enquiry to instruction is high and on these figures alone it is clear to see that there is light at the end of the tunnel. The ‘new’ Dubai will offer a more advantageous opportunity to investors on a far more stable foundation.”