Dubai property market to settle
Industry experts have expressed confidence that Dubai can look forward to lower inflation and a softening of the property market thanks to a new decree on rents.
Nassar Saidi, the chief economist for Dubai International Financial Exchange, said that one of the most important elements is that the government is taking policy action, which is being directed from a very high level, according to Gulf News.
This is a signal to the real estate market and would be welcomed by tenants, Saidi added.
"We will be seeing a softening of the market and a much more stable market," he said, pointing out that the decree also will help to moderate inflation.
Saidi said that because of the rent caps and the historic number of apartments coming onto the market in 2007-2008, rental prices may start to relax.
Housing costs make up as much as 40 per cent of the price indices used to track inflation. Saidi estimated that inflation in 2007 could decrease to 6 or 7 per cent as a result.