DUBAI : Standard & Poor’s ratings agency says that after 3 years of growth, the UAE property market is set for a soft correction and the crisis is prevented.

According to a research, extra supply and less demand on the property market of UAE this year is expected to result in the correction of 10-20 % in the real estate prices in Dubai. But the report of the S&P suggested that it is expected to be lower than 2009 bubble.

S&P added that the expanding economy, defensive measures and constructive demographics by the local supervisors are supposed to avoid the crises similar t the crisis of 2009.

The report further explains that the combination of good revenue and stronger capital structures must let the issuers hold out headwinds in the coming 12-24 months.  After coming to the peak the previous year, the property market of UAE will experience some decrease in 2015 and in the beginning of 2016, says the agency.

S$P said that the market is rotating in operating circumstances and is expected to reduce its performance. He further added that the significant decrease in the prices of oil will clearly crash the economic growth of UAE.

S&P credit analyst Franck Delage believes that the UAE real estate companies are well equipped to cope up with the current slowdown and must have the capability to understand it with the limited impact of ratings.

On Sunday, the Prime Minister Sheikh Mohammed bin Rashid al-Maktoum said that strong increase and growth is expected this year due to the growth of its oil-rich economy. It grew by 4.6pc in 2014. The sector that was non-oil was gown 8.1pc in 2014 and its involvement in the economy touched 68.6pc.

The worldwide financial crises also hit the fourth largest Opec supplier and declined the economic growth that averaged only 1.5pc between 2007 and 2011.