Dubai is certainly renowned for being the jewel of the Middle East. Over the years it has developed into a rich cosmopolitan land that attracts the wealthiest of individuals from all corners of the globe. It is said to be the fastest growing city in the world where cranes and construction sites dominate the skyline. Up until recently many suspected that the Dubai real estate industry was untouchable by the global economic crisis and that it would continue to rise despite sharp falls across the Western property markets. However, events in recent weeks are beginning to reveal that the market is not as robust as first suspected, including Abu Dhabi’s government injecting Dh16 billion ($4.3 billion) into five banks to shore up liquidity.

Over the last few months Dubai property prices have lost an estimated 25% in value since their peak in September 2008 with high end properties featuring bigger declines somewhere around the 35% mark. Even Dubai real estate giants are starting to take a massive hit as Emaar announces a fourth quarter loss of around $500 million.

So what does the future hold? According to the Dubai International Property Show held at the end of February, in every downturn comes opportunity and there are many bargains to be had. They suggest that there are a number of great offers and lower prices to tempt the potential investor to enter the market. And Dubai certainly has a lot going for it as according to research by Global Property, it is the 15th ‘coolest place’ to have a home in the world in 2009.