There seems to be distress sale going on in the booming residential property market of Dubai as either some owners are facing cash crunch or the projects are getting delayed. The sale of properties at zero premium was on the rise but was restricted to small luxury apartment portfolios and low rise residential blocks. Those selling the properties were single investors who owned low rise apartment blocks and were expecting to buy at lower prices and sell them at a higher price but unfortunately mismanaged their cash flows.



The property prices started shooting up in the year 2003-04 when the government allowed foreigners to invest in homes in Dubai in 2002 which let the investors make high profits on re-sales at high premiums but now the prices have seemed to have reached their peak and they could nosedive now as around 60,000 units are expected to hit the market by the year end.