UAE Property Prices

[Nawaz Shahzad]

Hi Folks

Over all prices in the UAE property market increased in Sep 2008 with highest recorded for Dubai with 17% followed by Abu Dhabi with 11%. This price hike is gearing up again after a moderation introduced this summer. Some of the sources said that Dubai seems to be stabilizing thereby compressing rental yields. On the other hand when we see that things are reached a level where Affordability is getting violated. Interestingly the government is in a full control to manage housing supply through its direct and indirect ownership in Dubai’s largest property development companies. Roughly 90% of upcoming supply in Dubai’s controlled by Nakheel, Dubai Holding & Emaar.

While prices in the UAE real estate market are becoming unaffordable, Dubai unlike Abu Dhabi offers a wide range of housing units catering to most income levels. Property prices in UAE softening is not only a good omen but also necessary at this point of sustainability.

Cheers
Nawaz