Oversupply of 150,000 houses in Dubai by 2011

* username: rupertbu

Dubai’s real estate market will have an oversupply of 150,000 residential units by the end of 2011, Swiss bank UBS estimated in its latest research note.

The oversupply of housing and commercial properties is expected to be 40 to 50 percent within two years, the bank said on Tuesday, reiterating that real estate prices will drop a further 30 percent.

“We estimate total Dubai housing supply by the end of 2011 to be roughly 360,000 with oversupply potentially at 150,000 residential units,” said Saud Masud, the Middle East head of research.

Property prices in the city, which once led the regional construction, boom have dropped more than 50 percent since their 2008 peak.