Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Overheating risks rise in Dubai realty market  Join our daily free Newsletter

MENAFN - Arab News - 25/08/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab News) The recent economic slowdown in China is having a profound impact in many of its sectors.

The property market in China which has been showing clear signs of cooling down in recent months is one of those in which the slowdown is expected to be more intense. Price growth peaked late last year reaching a yearly rate of 9.9 percent and has been trending down ever since.

In fact the month-on-month growth rate has been negative since May reaching monthly declines of nearly a full percentage point.

Second-hand house prices contributed the most to the moderation of property prices failing to grow in 19 out of the 70 most prominent cities in China.

Chinese authorities have been trying to moderate overheated real estate prices while meeting the large demand arising from urbanization.

A heterogeneous set of measures such as a tax on capital gains ownership restrictions for residents and mortgage rate hikes have already had a noticeable impact on the market.

Additional construction projects at affordable prices are also adding downward pressure to property market and they are expected to meet the large demand.

The government's recent success taming the real estate prices along with the increased level of affordable housing projects indicates that housing inflation may remain low in the medium term.

In Dubai the property market is at a different stage.

The global financial crisis had a major impact on Dubai's housing market causing a sharp correction in prices that continued for three years.

In the beginning of 2012 property prices started witnessing an accelerating growth rate.

Among other factors large money inflows seeking refuge from the regional instability elevated the economic growth rate of the Emirate and contributed to housing inflation.

Taking the pace of construction s a gauge for the real estate market there are no signs of cooling down.


The number of residential units built in Dubai is expected to grow at an annual rate of 6.6 percent this year according to Jones Lang LaSalle (JLL) projections in comparison to an annual growth rate of about 3 percent in the last two years.

Offices and retail property have also been registering large increases in both prices and stocks and according to JLL figures their vacancy rates have been declining despite the increase in supply. Dubai's real estate market is currently expanding across all types of property.

As history shows the emirate's property market is susceptible to overheating risks.

Memories of the last bubble which burst in 2008 are still fresh and the accelerating prices are already above pre-crisis levels.

Fundamental factors indicate that prices should be increasing in the emirate however it is not clear to what extent the current growth rate of prices is sustainable.

With the aim to ease inflationary pressures UAE policymakers already introduced measures such as taxes on property transactions at 4 percent of the price.

Although the tax rate is far below those found in Hong Kong and Singapore economies that suffered from overheated real estate markets its mere implementation signals authorities are aware of potential risks and may be ready to intervene in advance.

Both real estate markets share similar demand pressures which are expected to persist. However their outlooks are different.

While Chinese policies have already shown effectiveness the effect of the recent measures introduced in Dubai is still uncertain and economic characteristics of Dubai anticipate housing inflation moderation will be a challenging task.

Prepared by Jordi Rof economist at Asiya Investments aninvestmentfirminvesting in EmergingAsia A A

 


Arab News




  MENA News Headlines
 May 6 2016 - Omani new rail-network to surge exports considerablyMENAFN
(MENAFN) As the aspiring Omani national rail network currently under development connects prodigious mining sites with the Sultanate's maritime gateways, gypsum exports along other minerals will ...

 May 6 2016 - Air strikes on Syria displaced c killing 28 as Aleppo truce holdsThe Peninsula
(MENAFN - The Peninsula) Syrians carry a giant pre-Baath Syrian flag as they shout slogans during an anti-regime protest in the rebel-held Bustan al-Qasr district in eastern Aleppo on May 5 2016. The ...

 May 5 2016 - Qatar- Ronaldo hails Zidane as Real reach Chions League finalThe Peninsula
(MENAFN - The Peninsula) Real Madrid's Portuguese forward Cristiano Ronaldo controls the ball during the UEFA Champions League semi-final second leg football match Real Madrid CF vs Manchester City ...

 May 5 2016 - Qatar could host Summer Olympics says CoeThe Peninsula
(MENAFN - The Peninsula) President of the International Association of Athletics Federation (IAAF) Sebastian Coe (L) and Presdient of the Qatar Athletics Federation (QAF) Dahlan Al Hamad (R) speak ...

 May 5 2016 - Qatar Aquabike chionship to begin on FridayThe Peninsula
(MENAFN - The Peninsula) DOHA: The third round competitions of Qatar’s Local Aquabike Championship 2016 organized by the Qatar Sailing and Marine Sports Federation (QSMF) will get underway ...

 May 5 2016 - Gulf Air's FalconFlyer and Europcar in dealThe Peninsula
(MENAFN - The Peninsula) Gulf Air and Europcar officials signing the agreement. Manama: Gulf Air the Kingdom of Bahrain’s national carrier yesterday announced a partnership between the ...

 May 5 2016 - Visitors from Qatar to Dubai increase by 26 in Q1 2016The Peninsula
(MENAFN - The Peninsula) Doha: Dubai welcomed 4.1 million overnight visitors in the first three months of 2016 a 5.1% increase over the same period last year backed by strong double digit ...

 May 5 2016 - Joyalukkas wins Best Service Performance Brand awardThe Peninsula
(MENAFN - The Peninsula) Sheikh Mansoor bin Mohammed bin Rashid Al Maktoum honouring Joy Alukkas Chairman Joyalukkas at a function in Dubai. Dubai: The eponymous Joyalukkas Jewellery received ...

 May 5 2016 - Qatar- Real estate deals at QR580.6m in last week of AprilThe Peninsula
(MENAFN - The Peninsula) DOHA: The combined value of Qatar’s real estate transactions during the fourth week of April (from 24-28) amounted to QR580.6m showing over 57 percent growth compared ...

 May 5 2016 - Qatar- SP affirms QIB's long-term ratingThe Peninsula
(MENAFN - The Peninsula) DOHA: S&P Global Ratings has affirmed Qatar Islamic Bank’s (QIB) “A-/A-2” long and short term counterparty credit ratings. QIB’s rating reflects ...

 May 5 2016 - Qatar bourse and Goldman Sachs launch London roadshowThe Peninsula
(MENAFN - The Peninsula) DOHA: Qatar Exchange (QSE) in coordination with Goldman Sachs yesterday commenced in London a roadshow that aims to promote investment in the Qatari companies listed on QSE ...

 May 5 2016 - Vodafone Qatar unveils Connect Plans schemeThe Peninsula
(MENAFN - The Peninsula) Vodafone officials at the launch of the company’s ‘Connect Plans’ scheme at the Four Seasons Hotel in Doha yesterday. Pic: Baher A / The Peninsula ...

 May 5 2016 - Qatar for joint efforts to rejuvenate global economyThe Peninsula
(MENAFN - The Peninsula) Minister of Economy and Commerce H E Sheikh Ahmed bin Jassim bin Mohammed Al Thani with Chairman of the Presidential Council of the Republic of Bosnia and Herzegovina Bakir ...

 May 5 2016 - Philippines' leading airline Cebu Pacific boosts direct service to DohaThe Peninsula
(MENAFN - The Peninsula) DOHA: The Philippines’ leading airline Cebu Pacific (CEB) will add a frequency between Manila and Doha beginning July 9. The only Philippine carrier flying non-stop ...

 May 5 2016 - Qatar Today announces second edition of business excellence awardsThe Peninsula
(MENAFN - The Peninsula) DOHA: Qatar Today has announced the second edition of its Business Excellence Awards. The event being held under the auspices of Qatar Stock Exchange will identify ...

 May 5 2016 - Qatar Chamber participates in food security meetThe Peninsula
(MENAFN - The Peninsula) Sheikh Khalifa bin Jassem bin Mohammed Al Thani (left) Chairman Qatar Chamber at the Food Security Conference held in Fujairah. DOHA: Qatar Chamber (QC) participated ...

 May 5 2016 - KidzMondo set to open at Mall of QatarThe Peninsula
(MENAFN - The Peninsula) Ali Kazma (left) KidzMondo Founder and Nabil Barakat General Manager during a press conference and groundbreaking event of KidzMondo Doha at Hilton Hotel yesterday. Pic: ...

 May 5 2016 - Four wounded after rockets hit Turkey's KilisThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) >Four people including a police officer were wounded after rockets fired from Islamic State of Iraq and the Levant (ISIL)-controlled territory hit the ...

 May 5 2016 - Turkey- Delegation from Turkish opposition party detained in IsraelThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) >A delegation from Turkey’s far-right Great Unity Party (BBP) was detained at Israel’s Tel Aviv airport early on May 5 the party and CNN Türk ...

 May 5 2016 - ISIL must be pushed back in northern Syria: Turkish ministerThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) The Islamic State of Iraq and the Levant (ISIL) must immediately be pushed back from the Turkish border said Turkish Foreign Minister Mevlüt ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help