Gulf banks may have avoided most of the toxic assets polluting the global financial system but many are overexposed to a sector that rating agencies and analysts say may prove to be nearly as poisonous – property.
After years of growth, Dubai’s real estate market is particularly exposed to the withdrawal of credit. Residential prices have dropped 23 per cent from their peak last September according to research by HSBC, the bank, and some experts are talking about a 50 per cent drop in property prices from top to bottom.
This has shocked speculators who have dominated the market in recent years, but may hearten longer-term property investors as already healthy rental yields may improve. Rental yields are a function of the income that can be earned from a property compared to the price paid. They are also an important indicator of how expensive property is and how sustainable underlying prices are.
Dubai International Convention and Exhibition Centre from February 15th to 17th, Aim 186 Real Estate reports.
ReplyDeleteRepresentatives from Thailand, Spain, South Africa, Bulgaria, Egypt and the USA will all be present at the show, which gives developers the opportunity to target potential investors and inform them of opportunities that are currently available in the real estate market.
Do you have a web link for this?
ReplyDeleteFeel free to post here.
Rupert