UAE prices tipped to soar
Property investors in the United Arab Emirates have benefited from a steady rise in rental prices in the last few years, yet experts predict that the greatest gains in the coming years will come from capital appreciation.
The value of property is predicted to soar because the high rental prices and low interest rates have made owning a property a more financially viable and sensible long-term investment, reports Business 24-7.
Mohammed Al Safeen, chief executive of Buniah Group, commented: "The cost of funds has fallen with recent Fed interest rate cuts, and therefore the cost of capital to acquire property is cheaper."
Mr Safeen noted that the economic climate is excellent for those looking to purchase a property in the country, as current trends suggest that prices will soon soar as demand grows.
Rental prices in Abu Dhabi have risen in recent years as a result of a destabilising of the balance between supply and demand after an upsurge in the economy in 2006, with the shortage of homes now more than doubling each year and expected to reach 20,000 in 2009.
< Back to latest news