Dubai ranked second hottest housing market
Dubai continues to rebound from the dip that its property market suffered in recent years, and now finds itself ranked second in the world in terms of performance.
Forbes have ranked the market in the country as second only to Hong Kong, where values jumped by 23.6% in the past year.
Values in Dubai saw an increase of 19% across the board, with purchases and prices being pushed up by a significant number of overseas investors.
Hotel occupancy rates, always a good indicator of interest, averaged 88% and stood at amongst the highest in the world. The strong demand is seeing stock increase further with 11,200 additional rooms expected by 2015.
Indians are the second biggest group of buyers in the country whilst Chinese investment is also rising, a picture that is not uncommon across the world’s hot property markets.
The explosion of foreign interest is leading to drastic changes in the entire demographic of the country, CNN recently reported. The population now stands at over ten million people but Emiratis make up less than 10% of the population.
However, there are some voices warning that the current boom may not be sustainable. CBRE’s latest report suggests that new supply and further regulations are needed in order to maintain Dubai’s “competitiveness as a global business environment” as the rising cost of living is already having an impact.
Although sales have increased by 30% year-on-year in the first quarter of 2013, transactions are lower than the final quarter of last year, according to CBRE.
“The residential sector has maintained positive momentum amidst solid market fundamentals and steady economic growth,” the firm’s report stated. “However, there is a modicum of concern that the recent escalation of sales and leasing rates could actually be a little ahead of reality.”
If you want to send money abroad to Dubai, be sure to check the exchange rates offered by currency exchange specialist firms, as they are often far more competitive than those you can get from a bank.