This Time It’s Different: Dubai Seen Ready for Housing Drop - Bloomberg Business:
"Faced with predictions that Dubai home prices may drop as much as 20 percent this year, analysts say the emirate’s real estate developers and lenders are better prepared than when a crash in 2008 brought the city to the brink of bankruptcy.
Standard & Poor’s this week estimated that values may fall by as much as a fifth this year, while brokers CBRE Group and JLL Inc. see a 10 percent decline. Still, builders and banks face less risk than they did six years ago, thanks to lending restrictions, a clampdown on speculation and greater dependence on rental income.
“The sort of swings in house prices we expect in the short-term are lower than what we’ve seen in Dubai’s recent history,” said Franck Delage, director of corporate ratings for Europe, the Middle East and Africa. “We are not saying the market has matured yet, but we expect the current correction to be less excessive than in 2008-09.”"
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