ahlam1399
07-06-2015, 05:31 PM
Industry split over Dubai property prices? future
http://img-s-msn-com.akamaized.net/tenant/amp/entityid/AAcBuHi.img?h=100&w=100&m=6&q=60&o=f&l=fProperty executives in Dubai believe a "drastic" market correction in the city is unlikely, a study by London Business School has found. Up to 200 business executives were requested to analyse Dubai's residential property numbers, and the likelihood of a**ther bubble in the city, through the survey. 84% of the survey's respondents said they believe Dubai's property prices will **t plunge as they did during the market correction of 2008-2009. "Only 3% of those surveyed expect an annual decline larger than 20%," Joao Cocco, professor of finance at London Business School said. Opinion was divided on whether property prices would move upward or downward in the future; 49.75% of the respondents said prices will remain stable or increase, while the rest, over 50% of the total number surveyed, said property prices in Dubai are likely to decrease. Professor Cocco remarked: “It is reassuring to see that more than two-thirds of respondents do **t believe that property prices will keep on increasing at the same rate in the future. "Unrealistically high expectations of future house price growth have in the past been a source of booms in the housing market, only to turn into bust when expectations change.” Soaring property prices since hosting rights for World Expo 2020 were awarded to Dubai have led to intense speculation across the industry about the city heading for a**ther property bubble. However, 47% of the respondents stated they would continue to invest in Dubai property, with over a third of the total respondents citing Dubai's strong eco**mic outlook and high rental yields as their motivating factors. These respondents also claimed they would prefer to purchase property instead of renting. Greater restrictions on the supply of real estate could effectively limit market speculation and prevent a bubble, 44% of the respondents said. Tighter eligibility for home finance loans would also help said 18% of those surveyed. “Roughly half of the executives surveyed recognise the risk that the supply of new properties will increase at a faster rate than the demand, leading to a situation of over-supply and a decline in real estate prices, and favour greater restrictions on construction as a way to mitigate this risk,” Professor Cocco said. RELATED ARTICLES: Dubai-Metro-appreciates-property-values-by-41- , Dubai-property-market-to-be-**rmal-by-Q4-2015 , 7-Steps-To-Finding-The-Right-Property-Developer ,
http://img-s-msn-com.akamaized.net/tenant/amp/entityid/AAcBuHi.img?h=100&w=100&m=6&q=60&o=f&l=fProperty executives in Dubai believe a "drastic" market correction in the city is unlikely, a study by London Business School has found. Up to 200 business executives were requested to analyse Dubai's residential property numbers, and the likelihood of a**ther bubble in the city, through the survey. 84% of the survey's respondents said they believe Dubai's property prices will **t plunge as they did during the market correction of 2008-2009. "Only 3% of those surveyed expect an annual decline larger than 20%," Joao Cocco, professor of finance at London Business School said. Opinion was divided on whether property prices would move upward or downward in the future; 49.75% of the respondents said prices will remain stable or increase, while the rest, over 50% of the total number surveyed, said property prices in Dubai are likely to decrease. Professor Cocco remarked: “It is reassuring to see that more than two-thirds of respondents do **t believe that property prices will keep on increasing at the same rate in the future. "Unrealistically high expectations of future house price growth have in the past been a source of booms in the housing market, only to turn into bust when expectations change.” Soaring property prices since hosting rights for World Expo 2020 were awarded to Dubai have led to intense speculation across the industry about the city heading for a**ther property bubble. However, 47% of the respondents stated they would continue to invest in Dubai property, with over a third of the total respondents citing Dubai's strong eco**mic outlook and high rental yields as their motivating factors. These respondents also claimed they would prefer to purchase property instead of renting. Greater restrictions on the supply of real estate could effectively limit market speculation and prevent a bubble, 44% of the respondents said. Tighter eligibility for home finance loans would also help said 18% of those surveyed. “Roughly half of the executives surveyed recognise the risk that the supply of new properties will increase at a faster rate than the demand, leading to a situation of over-supply and a decline in real estate prices, and favour greater restrictions on construction as a way to mitigate this risk,” Professor Cocco said. RELATED ARTICLES: Dubai-Metro-appreciates-property-values-by-41- , Dubai-property-market-to-be-**rmal-by-Q4-2015 , 7-Steps-To-Finding-The-Right-Property-Developer ,