As cranes speckle the Dubai skyline and ultra-luxury homes change hands at record prices, signs that the city-state's property boom is fizzling out are coming into view.
Developers, investors and brokers are privately asking how quickly one of last year's hottest real estate markets could turn and whether a painful correction akin to the slump that rocked the emirate in 2008 can be ruled out.
Since then Dubai has pursued an economic reboot anchored on what it hopes is sustainable growth, including a 10-year plan known as D33, to double output and become one of the world's top four financial centres.
Still, the real-estate industry remains a key barometer of its success, accounting for 8.9% of the economy.
"Dubai's vulnerability to correction lies in its dependence on foreign capital, particularly from China and Russia," Ronan Hannan, principal at consultancy Proven Partners, told Reuters.
Massive infrastructure spending, generous income tax policies and an 'open-door' approach to immigration reinforced after the pandemic have attracted thousands of foreigners.
No comments:
Post a Comment