Dubai’s Rising House Prices Pose Economic Risk- Expert » Gulf Business

Dubai’s Rising House Prices Pose Economic Risk- Expert » Gulf Business:



"Dubai’s rising house prices are among the largest risks to the emirate’s economy this year, an expert has said.



“One of the risks that Dubai ran back in 2008 to 2009 when its economy got really inflated was that housing prices were rising massively,” said Shady Shaher, senior economist at Standard Chartered, MENA.




“Do not underestimate the risk the housing market can pose for the economy. Housing basket is 40 per cent of total inflation basket and the largest component.



“I think it is only going to accelerate significantly in 2014. So managing growth will be the key element post crisis in Dubai and the UAE,” he said.



Real estate was one of the worst affected sectors during Dubai’s economic crash in 2009. But as the emirate’s economy has recovered so too have property prices rising around 30 per cent in 2013.



Dubai’s real estate authorities have taken various steps to stem increasing house prices. Last year, Dubai’s land department increased the property transaction fee from two to four per cent while a ruling that restricted mortgages for the purchase of property has also come into force."



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