Dubai property boom: how not to deal with a crisis | GulfNews.com

Dubai property boom: how not to deal with a crisis | GulfNews.com:

"The biggest speculation related to Dubai’s new property boom is on the speculation itself. There is a range of differing perceptions about the sustainability of the boom, although the majority view is that the new project launches are characterised by moderation rather than frenzy, the type of which drove the market to unsustainable dizzy heights in 2008.
Unlike in the past, much of the current pick-up in Dubai’s property sector is attributed to the flow of funds from areas of political turbulence such as Syria and Egypt, and mostly in the form of cash transactions. There is some concern that this is leaving out a huge potential segment of buyers who would want to own their homes using mortgages, which lends depth to any property market.
Recent reports by Standard Chartered Bank and Jones Lang LaSalle represent two contrasting views, with the former forecasting a moderate pick-up and the latter questioning the sustainability of the current rates. Interestingly, there is a clear change in the perception of the western media about the new boom taking hold in Dubai’s property market."

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