CB Richard Ellis Middle East recently issued a report on the real estate markets in Dubak.

As was expected, the real estate markets in Dubai continue to have declinging prices, but the rate of decline is slowing. The latest analysis reports that the bottom could be reached before the end of this year

At this time, property investors are leasing rather than selling.

Office space currently outstrips demand In the commercial sector, because new completions add further pressure to existing stock. Because developers are both slowing down some construction projects and halting others, several projects have been pushed back by months if not years.

Companies that are looking for new office space are typically renting out of olde buidilngs, because of reduced setup costs. Therefore, vacancy rates in newer locations remain high.

An expatriate workforce has left residential properties empty. This  has resulted in a sharp drop in lease rates for residential apartments.

Bur Dubai, Deira and Karama, which previously had high occupancy ratios, now have greater numbers of  vacant apartments in both older and newer buildings.

An important factor is the next six months will be the amount of property space coming onto the market . The impact is expected to result in further competition between landlords and greater incentives for tenants, the CB Richard Ellis Middle East  report concludes.