Paper describes factors behind UAE real estate boom
Boom is the only word that is familiar to real estate and stock market investors in the UAE today, writes Khaleej Times. Many analysts and finance professionals believe that the UAE economy's fundamentals are strong enough to justify both booms.
In the real estate sector, the oil price surge has triggered the construction led economic boom. But one fundamental difference in the UAE is that the real estate boom is supported by strong infrastructure investment led by various arms of the government.
The sustainability of the real estate boom depends on a number of factors, including the availability of funds (liquidity) its cost (interest rates), changes in property laws, the relative property prices and the targeted population growth, the paper adds.