The news of Dubai’s financial crisis seems to have no fact. Though the recession in US has affected the state, it has sufficient reserves to tide over the situation. The housing and the financial sector is the most affected.

There was a time when the construction in the emirate seemed to have no end. The sounds of the construction were omnipresent even in the night. This all has come to a halt resulting in unemployment. The prices of the property have eroded significantly. Hotel room rentals have also come down. The boom in this sector is a thing of past now.

The hotel industry of Dubai was in a state of shock, when the reality sector sank in. the need of the hotels in the Dubai was overestimated. Asia Asia planned to be the world’s largest hotel. The rentals are still high enough for the hotel rooms, which looks expensive even to the westerners. The state will have to make things affordable to save the economy. Otherwise it will be difficult to tide over the situation.

It will take time for the Dubai hotel bookings to reach its full capacity once again. The entire Dubai hotels have slashed their rates in order to be in the race. The fierce completion for survival in the industry is proving to be a boon for the customers.

The recovery in the economy and hotel industry evidently will depend on many factors like doing business,construction etc. There is a report that the news that rentals for residential property have fallen 38 percent since 2009,with 18 percent decrease in Abu Dhabi.

The positive side of the story is, the recent increase in the investing activities is a good indication of recovery.Exess liquidity and easy moneatary measures resulted in the low interest rates. Dollar depreciation led to flow money out of banks into property.

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