The last six months have been particularly challenging for the Dubai property market, with property prices in the emirates reducing by as much as 40% in some areas. More recently however, they have been signs that the market for property in Dubai is at least beginning to stabilise, and a report out this week from Standard Chartered is the latest in a series of announcements in Dubai which are suggesting that the worst of the crisis may indeed be over. Whilst it may be too early to start mentioning the green shoots of recovery just yet, factors such as the easing of the major bank's lending criteria may well be beginning to have an effect.

Philippe Dauba-Pantanacce, Standard Chartered Senior Economist said "The end of the freefall is encouraging. The first signs of stabilisation in Dubai's real estate sector have appeared, taking observers by surprise since further declines were expected. Some caution is warranted, as there are still question marks surrounding population flows."

This process of stabilisation is undoubtedly at an early stage, however the major mortgage providers have relaxed their criteria in the past couple of months, and are now offering higher loan to value ratios than were being seen at the beginning of the year. This process has undoubtedly led to an increased amount of activity in the Dubai property market of late.

The traditional summer lull is expected to begin in the next few weeks, which will undoubtedly have an impact on any potential recovery in the short term, however these positive signs do bode well for the long term dynamics of the Dubai property market, and we should start to see more encouraging signs in Q3 of this year.