The Dubai property market will be under increasing pressure in the year ahead as an estimated 32,000 homes come on to the market but financing for buyers and developers remains scant, leading analysts say.

The revival of the once booming sector, which was battered by price declines of as much as 50% as well as investor defaults and stalled projects since its peak last year, will also depend on the strength of the regional economies.

'The key issue has to be the availability of funding and the ability and readiness of banks to grow their mortgage books,' said Simon Williams, the chief economist at HSBC. 'Without funding, there isn’t a real estate market in the world that won’t be weak, including here.'

The National