Dubai real estate market shows signs of overheating
DUBAI: Concerns have been expressed in many quarters that the revived real estate market of Dubai is showing signs of overheating.
By: IS Real Estate
Of course there is a renewed economic confidence in the Emirate well visible in the trade, tourism and service sectors. Dubai is still a haven amid regional unrest with companies hiring more thanks to the business hub status of the oil-rich region.
A report by a reputed property consultancy noted that the residential sector is showing ‘signs of overheating’
Officials warned that rental growth is outpacing wage inflation and will start impacting Dubai’s competitiveness if this trend at current levels sustain for long”.
Caution also came from the IMF saying that the government should prevent a return to “boom-and-
The real estate consultancy advocated enforcing a real estate fees to mitigate speculation in the property market.
The real estate consultancy noted that there had been widespread growth in the residential sector driven by prime properties including the world’s tallest tower and Dubai’s man-made Palm Island triggering price inflation in less-popular areas, even in developments located close to the desert outskirts such as Jumeirah Village and Dubai Sports City.
However, there is hope that a spate property launch in recent times will ease the constraints in demand for popular districts.
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Page Updated Last on: Jan 27, 2014