UAE: Real estate sector to achieve good results
The governor of the United Arab Emirate Central Bank, Sultan Naser Al-Suwaidi, expected real estate sector to achieve good results next year, but stressed that raising the number of housing units more than necessary may cause some problems, reported the Emirate newspaper Al-Bayan on September 20, 2005.
Al-Suwaidi, who was speaking with the press after receiving an economic delegation from Canada, predicted a sharp decline in house renting fees at the beginning of 2006. He mentioned that several international financial institutions are concerned by the increase in the volume of real estate assets and the entry of investments higher than necessary to the real estate sector, admitting that there is an inflation in real estate assets' prices at present.
Al-Suwaidi said also that there might be a temporal inflation of 5.5%-6.5% this year, but it is expected not to last through the next two years.