Commercial and residential property markets in Saudi Arabia, Kuwait and Dubai are the most attractive residential markets for investors. Dubai is also showing some signs of stabilization since the beginning of 2^nd quarter of 2011. According to a recent analytical report, it is seen that there is still a downward pressure on Abu Dhabi residential property prices and rental amounts. May be because, in the whole Gulf region residential properties are suffering from oversupply. Rents of residential properties in Dubai are decreased minutely in the second quarter, following the similar trend in 1^st quarter in 2011.

While at the same time, commercial properties maintain a significant level in terms of rental amounts and selling price values both. In comparison to residential rental properties in Dubai, commercial properties rents have maintained their 1^st quarter levels of 2011 without any significant declines.

The continuous new supply of residential properties leads to a drop down in selling prices of Dubai apartments, villas and rest of the property units in various areas throughout the city. While, almost the same situation is prevailing in Abu Dhabi real estate market, where just because of new supply of residential units, rents of apartments and villas are also declining and negatively affecting the values of new deliveries in residential sector.

In the meanwhile, businesses are shifting to Abu Dhabi therefore commercial properties are in high demand over there. It can be said that commercial properties are the most lucrative investment options throughout Gulf. Commercial properties rents are not declined as compared to the residential properties in Abu Dhabi, Dubai and other Gulf states. The rents of commercial properties are stabilized in the region overall and especially in Abu Dhabi as more and more business opportunities are heading towards it.

Rents of residential property in Abu Dhabi dropped down modestly as the demand outpaced the supply on the growing population and business activities of the region. Oversupply of residential properties will continue to exert a downward pressure on rental and selling rates while the commercial properties will enjoy a good level of rental and selling values in the near future so they are best investment options for the investors.