Friday, July 4, 2014
House Prices in United Arab Emirates
“(…) residential property prices in Dubai have been increasing quickly, though the momentum appears to have slowed in recent months. Some data sources suggest that Dubai’s residential sale prices have already reached their previous peak in nominal terms. The recovery in Abu Dhabi’s residential market has started much later than in Dubai and the price level is still well below its peak, says the IMF’s new economic report on United Arab Emirates.
Moreover, the report says “Price-income and price-rent ratios can provide some guidance on valuation in the real estate market. Dubai’s price-income ratio has been rising back to its 2008 peak, which could indicate a risk of overvaluation. Price-rent ratios also increased in Dubai and Abu Dhabi.” For a thorough analysis, see a special chapter on The Real Estate Market and Expo 2020 in the United Arab Emirates: Avoiding Bubbles and Macro-Instability.
Posted by at 12:42 AM
Labels: Global Housing Watch
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