As Dubai Property Prices Spike, Inflation Concerns Too - Middle East Real Time - WSJ

As Dubai Property Prices Spike, Inflation Concerns Too - Middle East Real Time - WSJ:



"Dubai’s property market is poised to continue its sharp recovery throughout 2014 even as recent price spikes have sparked fresh concerns that the domestic real estate sector is overheating again and excessively pushing up the cost of living in the emirate, according to CBRE.



“The rising cost of living in the emirate is now starting to become a very real concern for many residents, with rentals having risen by an average of 45% during the past two years,” said Mat Green, Head of

Research & Consultancy UAE, CBRE Middle East.

Average Apartment Rents, 2008-1Q2014

 

CBRE

Dubai’s apartment rents have jumped 29% in the first quarter compared to last year despite efforts by the authorities to curb speculation and excessive borrowing. CBRE expects 17000 new residential units to be delivered and says while that is still below pre-crisis levels, there is “a danger that further down the line supply could again start to exceed demand fundamentals.”"



'via Blog this'