Dubai property prices increase with 40% in July – The National – Bradley Hope – 14 August 08
Dubai property prices rose by an average of 40 per cent in the month of July compared to a year earlier, Al Mal Capital revealed today…Meanwhile, rental yields declined slightly in July to 6.8 per cent compared to 7.8 per cent the year before as property prices outpaced rental rates, said Robert Mckinnon, managing director of Al Mal Capital, in a note to investors…The yields are expected to lower even more in the coming months because of expected property price increases…
Combine this story with Gulp in the Gulf? - Dubai house prices ‘to fall’ by 10% (Morgan Stanley as reported in the same newspaper and as reflected in the share price of major real estate companies) and you have either what looks like a market approaching the tipping point (or analysts missing the real story). The conservative approach would be to take some of the short-term out-sized gains and diversify rather than double down and leave the gamblers and newbies to take the risk – which is what the big players seem to be doing.
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