2011 was a positive year for Dubai real estate with property prices stabilizing and in some areas picking up as well. This has been possible due to various cost savings associated with Dubai property in a market which is now predominantly a buyer and tenants’ one. The Dubai property market has also shown immense resilience to the economic crisis.  Sellers are today, realistic about asking prices for their Dubai property, while landlords are also getting more and more flexible with their leasing terms and rentals for their Dubai property, making the real estate market in Dubai more mature than before. While prices of Dubai real estate, both sales and leasing, have marginally declined, Dubai property has strengthened by buyers from other Arab countries and round the world.  With prices of Dubai real estate stabilizing, one can see increasing price competition for owners. This has allowed buyers and tenants to have better choice.  Rentals for Dubai property have also seen a small slide in prime and mid-market areas. International City was one of the few Dubai real estate developments that witnessed minor declines in the last quarter of 2011. The average annual rental for a one bedroom apartment in Dubai Marina during the last quarter was around AED 65,000 while double bedroom apartments were sold for AED 80,000. Rentals for single and double bedroom properties on The Palm Jumeirah were priced at AED 90,000 and AED 120,000 respectively. Villa rentals remained stable. Competitive rents and flexible leasing terms ensured that rental transactions for apartments and villas in the Dubai property market picked up as customers took advantage of lower rates and moved into bigger and better Dubai properties. Demand for Dubai property continues to be seen in communities such as Discovery Gardens, Dubai Marina, Jumeirah Lake Towers, Sheikh Zayed Road, Downtown, The Palm Jumeirah, Emirates Living and Arabian Ranches. Sale prices of apartments also stabilised in the fourth quarter, following slight declines in the previous quarters. Luxury Dubai properties experienced a slight increase as investors with ready cash tagged most of them as safe investment ventures. The luxury Dubai real estate market has continued to show strong indications of recovery, during the last quarter of 2011, where Dubai luxury property developments such as Al Barari continued to attract interest from local and international investors. Despite the global meltdown, the Dubai real estate market continues to hold its ground as a global and regional destination for investments, drawing international investors with its reputation of being a safe and stable haven.