Dubai glows under real estate sunshine
Real estate continues to ring in prosperity for Dubai as a whole with the property sector recording double-digit annual revenues, a report said. The property boom in Dubai is being driven by the demographics of the region (high population growth rates), strong regional liquidity and rising demand from expatriates.
In the report called "Dubai Inc: Credit Overview and Relative Valuation", Lehman Brothers said: "Tourism, which already accounts for 30 per cent of Dubai's gross domestic product, shows no sign of abating with the growing tourism-oriented real estate developments and increased airline services."
The Dubai is fast emerging as a financial, services tourism and real estate hub as well as an oasis of relative stability in a troubled region, says the report. Considering the supply/demand imbalance prices in the real estate sector look likely to remain elevated over the next couple of years, after which, a large number of properties that are currently under construction, should be near completion.
