Dubai Shares Drop Amid Property Warning Signs; Abu Dhabi Falls - Bloomberg

Dubai Shares Drop Amid Property Warning Signs; Abu Dhabi Falls - Bloomberg:



"Dubai stocks declined, led by construction and property companies, as a United Arab Emirates Central Bank report signaled the country’s real-estate market may be overheating. Shares in Abu Dhabi also retreated.



The DFM General Index (KWSEIDX) slid 2.5 percent, the biggest decline since May 28, to 4,972.78 at the close in Dubai. Arabtec Holding Co. (ARTC), the largest listed building contractor in the country, tumbled 6.7 percent, and Emaar Properties PJSC, developer of the world’s tallest tower, slumped 2 percent. Abu Dhabi’s ADX General Index retreated 1.1 percent to 4,997.86, the lowest since May 28.



Average rental yields in Dubai and Abu Dhabi have fallen below historical averages as real-estate prices rise, indicating that the market may be expanding too fast, the central bank said in today's report. Property and construction companies have led an equities rally in Dubai, where the benchmark index has increased more than three-fold since the start of last year, according to data compiled by Bloomberg."



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