Mmmmmm, I agree that this liquidity crisis will affect the property market, however, if I may offer a slightly different slant on matters......
There is nothing wrong with the property market in Dubai.....it is ruled by supply and demand and like any other and this crisis is a threat to supply....which translates directly into increased yields(ie rents). This will attract capital no matter what.
Please don't get me wrong....I am not saying that this crisis will not hurt Dubai. I am simply pointing out that compared to the UK or US where a sick market caused the choas, here the crisis is affecting a healthy market. Big difference.
Bottom line is that I think the coming months will see some panic selling plus distressed sales of people unable to meet 2nd(or3rd) installments of 15% who had planned to sell before payment was due(read speculators) and this is going to lead to some excellent bargains for those that can raise the 30% deposit.
As a side note, I have a theory that this is going to cause a shift of interest to places like Ajman where developers are offering attractive payment plans. The need for housing is as great as ever and needs to be fulfilled. Comments?