Dubai not headed for 2008 repeat
Dubai property market now more sustainable, Standard Chartered report finds
RELATED ARTICLES: Office oversupply in Dubai prompts developers to change plans | Women invest $3.6bn in Dubai real estate | UAE construction predicted to return to full capacity A recent Standard Chartered report has found that Dubai’s property market is not headed towards another crash, following concerns that the market recovery may have been accelerating too quickly. Despite apartment prices rising to 38% over the past year and villa costs rising to 24%, the study found that the UAE’s property market is now more sustainable and will not repeat the ‘boom-and-bust cycle of 2008’. “The market seems to be driven by fundamentals rather than excess speculation, in contrast to what the market went through in 2008. The outlook of the market will therefore depend on how these fundamentals evolve over time,” the report said. “Right now, we conclude that there are no serious indications of a speculative bubble in the housing market,” it added. The report further focusses on the new set of laws that are aimed at maintaining property values, and within two years, Dubai could have seven new laws for the same. “The commitment towards improving and strengthening corporate governance practices by protecting property rights has helped gain new investors and maintain existing ones. Stakeholders such as homeowners and tenants have regained confidence in the real estate sector, as reflected in the recovery of market prices,” the report continued.
