No bubble-burst for UAE property market
A top official in the UAE stated that a correction in the country's real estate market might occur in 1006, though a bubble burst was unlikely.
In an interview with Gulf News, Dr Mohsin S. Khan, IMF's director for the Middle East and Central Asia stated, "From what I hear, there is a speculative element in the UAE's real estate market. People holding properties for investment purposes."
Khan added that there were "40,000 to 60,000 new housing units coming up every year," which should be enough to dampen the trend.
"Will the market collapse - may not. But will it stabilise? Yes," he pointed out.
However, Khan pointed out that it was essential for the UAE needs to improve its statistical database. "I think it's essential for a country's policymakers and citizens to have up-to-date information on economy," he said.
"I see a recognition among the UAE government officials to develop the statistical database on inflation and GDP growth.
"The UAE government has already said that they will carry out a household survey, which could be the beginning of this."