Despite calculating a housing over-supply of 110,000 to 115,000 by the end of 2012, the Dubai-based real estate and investment advisory firm Investment Boutique also believes that the emirate's housing market will go on the upswing that year. In its Dubai State of the Market 2010 Report, it predicts that prices will reach bottom this year, and that banks will relax their lending criteria.

Because of the housing surplus, consultancy firm Jones Lang LaSalle believes that the Dubai residential market will not fully recover before 2011 at the earliest.