‘Dubai property bubble fears exaggerated’

Fears of Dubai?s real estate market experiencing a bubble are ?exaggerated?, Goldman Sachs Group said in a report on Monday.

?New regulations from the Dubai Land Department are aimed at curbing speculation, while new supply is helping keep values down,? the US-based investment bank said.

Property prices are 36 per cent below their 2008 peak even after rising by about a third from a low in the second quarter of 2011, bank analysts added.

Standard Chartered said in August that despite prices soaring, Dubai’s property market was not heading towards another crash and the market was more sustainable, influenced by an improved economy rather than speculation.

Although the UK-based Knight Frank said property prices and rents in Dubai have risen at the fastest pace in the world, Jones Lang LaSalle reported last month that the rate of increase (price and rent) will slow down over the next 12 to 24 months.

via ‘Dubai property bubble fears exaggerated’ – Emirates 24/7.