Dubai Property Market Cooling
In Dubai there are now strong signs that the government is getting some sort of grip on the excesses of the Dubai property market - and about time too. We have long viewed the market as quite high risk. The market has an unusual set of drivers and is not exactly the most transparent place to buy property.
The huge amount of building there inevitably raises questions about oversupply,but seemingly so far demand has outstripped supply.
Price growth in some parts of Dubai has been reported to be an almost unbelievable 79% in 2007,that is on top of already impressive growth figures in the previous years. High growth is continuing in 2008.
Now in mid-2008 the government is stepping in to to regulate off-plan purchases,mortgages and are implementing a whole raft of measures to cool the market. These are likely to do the job they are intended to do.
Like some of the buildings in Dubai the property market has seemed to defy gravity. With high prices and more heavy government intervention I would be even more wary of investing in Dubai than I have been in the last few years. It remains to be seen where the Dubai property market will head next and whether the Dubai government can really use their oil money to turn a patch of desert into one of the world’s true commercial and financial centres.
Overall,I would avoid Dubai as an investment location,high investment returns can be made elsewhere for much lower risk.
Tags: Dubai property
Uncategorized | admin | 
February 16, 2009 2:37 am
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