More real estate buyers are seeking legal advice before investing in property in Dubai because of increasing concerns over security, it is claimed.

The head of Dubai’s second largest developer, Deyaar, believes that the real estate market in the emirate will post a recovery in 2011, the third year after its initial crash.

The real estate market in the Gulf is likely to bottom in the second quarter of this year but the expected rush of distressed assets and entry of vulture funds has not yet materialised, it is claimed.

Real estate developers in the Gulf region are going to have to negotiate creatively with investors during 2010 to avoid a rise in defaults, it is claimed.

Property sales in Bahrain have virtually dried up and the next two years will see significant challenges for the real estate sector, according to a new report.