EIU: Oversupply in Dubai real estate market not expected until at least 2007
Dubai has become a real estate seller’s market, as supply of office and residential space is failing to keep pace with the growing demand. Prices, rents and service charges are increasing, as European and Asian expatriates, local investors and other Gulf Arabs are snapping up properties as soon as they come on the market.
According to the EIU, a host of new apartment blocks and villa complexes are under construction across the emirate, from Deira to Dubai marina, but most analysts believe that there is no danger of oversupply until at least 2007.
Among the expatriate population, there is still much pent-up demand, and earnings remain buoyant. The outlook for the UAE economy is positive, particularly if projects such as the Dubai International Financial Centre pick up speed.