UPDATE 1-UAE c.bank: rental yields may indicate growing imbalances, overheating | Reuters

UPDATE 1-UAE c.bank: rental yields may indicate growing imbalances, overheating | Reuters:



"Residential rental yields in Dubai and Abu Dhabi could indicate growing imbalances and overheating in the country's real estate sector, the United Arab Emirates central bank said on Sunday, in the first official warning about soaring property prices.



"Current average rental yields in Dubai and Abu Dhabi are approximately 70 and 130 basis points below historical averages, which could indicate growing imbalances - overheating real estate market," it said in an annual financial stability report.



"Monitoring development in the UAE real estate markets and the banks' exposure to it remains a core financial stability priority," it added.



House prices in Dubai, which suffered a property market crash in 2008, topped the global rankings in January-March for the fourth consecutive quarter, soaring 27.7 percent from a year ago, a report by Knight Frank property consultancy said."



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