Opinion | Editorials

Realty correction good in long term

Lower prices will impact cost of living and doing business, and attract right skills

  • Gulf News
  • Published: 00:00 August 3, 2010
  • Gulf News

Cooling off
  • Image Credit: Silvia Baron/Gulf News
  • As property prices come down, the cost of living and doing business in the UAE will drop, helping to attract the people and skills needed to maintain and strengthen economic growth.

Economic management is often about painful trade-offs but the correction in the property market in the UAE will be good for the country in the long term.

As property prices come down, the cost of living and doing business in the UAE will drop, helping to attract the people and skills needed to maintain and strengthen economic growth.

The correction is in part simply a result of the prices coming into line with market demands. As more development projects are completed, property prices will drop because of the laws of supply and demand. This will undoubtedly be painful for those who over-invested at the top of the market.

The ending of inflated prices for homes and offices will encourage residents and companies to own properties, improving stability in the market. The rapid turn-over of properties by those interested in only making a quick profit was a risk for both the realty and financial markets.

Gulf News
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