Distressed funds circle Dubai realty

A number of distressed funds are standing on the sidelines waiting to jump into Dubai's real estate pool and invest in some of the attractively valued assets, industry experts said on Tuesday.

While no significant distressed funds are yet active, the few in the pipeline are likely to increase confidence in the market and rescue defaulted assets.

"There are direct investments but they are taking much longer, people are spending more time doing due diligence. And we are seeing a number of distressed funds preparing to enter the market," explained Heather Wipperman, chief executive officer of Investment Boutique.