International money transfers could benefit from Dubai recovery

A return to foreign property investment in Dubai, through which UK investors transfer money abroad, was predicted by an analyst today (November 23rd).

Siddeek Talati at Emirate Ventures said that the city was "built on confidence" and that recovery would come once confidence had returned.

The expert added that he "wouldn't be surprised" if property prices had not already bottomed out from the global downturn.

However, Mr Talati also warned that it could be several years before the market returned to pre-credit crisis levels.

The comments come in the wake of new research from Colliers International, which suggested that property prices in Dubai rose by seven per cent over the third quarter of 2009.

Typical values were also 47 per cent down year-on-year during the three-month period.

Mr Talati added: "Once Dubai is more confident in itself and investing in itself, then foreign investment will start returning back to it. Dubai was a city built on confidence – user confidence – because as it was being constructed there wasn't a lot there other than the promise that there was going to be a lot of stuff there."

"Dubai is kind of unpredictable."

Posted by Emma Clarke