Dubai's once-booming property market can expect more pain with oversupply likely to delay a price recovery in the Gulf emirate until 2016, ratings agency Moody's said on Monday. House prices in Dubai soared after the emirate -- which overstretched itself building extravagant real estate projects -- opened its real estate sector to foreign investors in 2002, granting them freehold ownership rights at many developments. From start-2007 to mid-2008, prices rallied almost 80 percent, Morgan Stanley estimates showed. But the bubble burst when global economic woes and a debt crisis at home led to billions of dollars worth of projects being put on hold or cancelled while house prices plummeted some 60 percent from their peaks. "When you look at Dubai, yes the market is oversupplied on the residential side," Martin Kohlhase, senior analyst, EMEA Corporate Finance at Moody's, told the Reuters Middle East Investment Summit in Dubai. "We don't see recovery over the next five years. New construction, new projects are unlikely to happen and the same would hold true for the commercial market," he added. Dubai's housing market will plummet another 10 percent before it stabilises, a Reuters poll showed earlier on Monday, adding the market is oversupplied by about 25 percent. http://en.news.maktoob.com/20090001175408/Oversupply_to_cap_Dubai_property_recovery_until_2016/Article.htm