What is the future of Dubai real estate
Some of the most luxurious properties in the world are located in Dubai. But investor Mark Mobius now considers the prices there to be significantly overpriced.
Dubai has launched numerous spectacular projects in recent years, including underwater hotels, rotating skyscrapers, buildings in the shape of chess pieces and artificial islands, to name just a few. But this building boom has meanwhile led to an oversupply.
As reported by "Bloomberg", real estate prices and rents have therefore plummeted by a third in the last five years. Against this background, Mark Mobius has also advised against investing in the emirate.
Mark Mobius advises to wait and see
Mobius believes the downturn will "get much worse". "I would rather wait until there is a real drop in prices when all these new buildings are completed," said the well-known portfolio manager at Franklin Templeton Investments, whose tips many investors use as a guide.
Shares in real estate developers in Dubai are also too expensive for Mobius. The city will be strengthened by the upcoming Expo 2020, but this will not be enough to stimulate the real estate market there as long as the government does not change its immigration policy.
The downturn continues
Lahlou Meksaoui, a Dubai-based analyst at Moody's Investors Service, also believes the real estate market will continue to cool for another twelve to 18 months. Government measures - such as long-term visas for the rich and skilled - are simply not enough to stimulate demand.
Dubai is not only the largest city in the United Arab Emirates, but also the capital of the Emirates Dubai. The kingdom has struggled with its significant real estate market in the past. After a real estate bubble burst around ten years ago, bankruptcy could only be averted thanks to a $ 20 billion rescue package from the neighboring emirate of Abu Dhabi.
Image Sources: Renata Sedmakova / Shutterstock.com
- How do you grow edible bananas?
- Why is it called the dispersive power
- What is the mobile app called Yo
- Which is the best Fitbit to buy
- Will Trump admit the shutdown is wrong
- What is the third of 99
- What is the oxidation number for H3PO4
- What is the tallest mountain in Alaska
- Are there things that are encouraging to writers
- Who designed the original Quora user interface
- What was the last NES game released
- May Pakistani Americans
- Best Small Business Apps for Android
- How does a phone fraud work
- What is BBA in event management
- Why isn't Utah so famous?
- How does speciation take place
- Which is better Origence or FIITJEE
- Does my tibial nuberosity look normal?
- Can writer's block be scientifically explained?
- What are the best bars in Amsterdam
- Can I use Salesforce for free
- Should the actor marry Salman Khan
- What do customer service departments do
- Polyamory favors male or female leaders
- Are prisoners executed under the Marshal Law
- Are bees or wasps smarter?
- What are the benefits of Kapal Bhati
- What is Alon Amits MBTI
- Why are poleaxes generally shorter than halberds
- What is your original sonnet
- Is Systema good to deal with
- Has anyone ever survived a fight against a bear