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zugzwang

Dubai Gets Another Bubble 5 Years On

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Residential property prices up more than 30% yoy.

Mean time between failure of these Ponzi schemes appears to be getting shorter and shorter.

Reports of Dubai home prices jumping more than 30 percent in the last year are raising concerns that a bubble is forming in the property market.

The growth in residential prices is "indeed unsustainable," Jones Lang LaSalle argues in a new report. The firm predicts prices will continue to rise for the next 12 months, but the "rate of increase will decline somewhat."

"An extended period of slower and more subdued growth would be far more beneficial to the overall market than a continuation of the current rates of increase, followed by a severe correction," JLL says in the report.

Home prices are were up 17.9 percent in August from a year earlier, according to REIDIN, which tracks Dubai Land Department data. But prices increased more than 30 percent in some projects.

Some firms report that prices are rising faster than the rates suggested by the Land Department data. Apartment prices were up 42 percent in the third quarter compared to a year earlier, property firm Asteco reported this week.

More than 45,000 residential units are scheduled to complete by 2015. About 80 percent of purchases recorded with the Dubai Land Department in the first half of 2013 were are all-cash, suggesting that investors were playing a large role. And recent history illustrates how "speculative money can withdraw from the market very quickly," - See more at: http://www.worldprop...h.rQTQW9Ld.dpuf

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trying to slow it down?

JLL's report suggested the current overheating would be tempered by new regulation, significant house supply and developers being less dependent on pre-sales.

Dubai said last week that it would raise the registration fee charged for real estate transactions to 4 percent from 2 percent to prevent excessive speculation in the property market. The government is also working on introducing mortgage limits for expatriate and local investors

http://www.albawaba.com/business/dubai-real-estate-524659''>http://www.albawaba.com/business/dubai-real-estate-524659' rel="external nofollow">

http://www.albawaba.com/business/dubai-real-estate-524659

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Residential property prices up more than 30% yoy.

Mean time between failure of these Ponzi schemes appears to be getting shorter and shorter.

Why would you want to call a Kingdom by that name ? Dubai has given me and a lot of British people a very good living more than the uk ever did for me.

British Aerospace / Airbus would have to lay off thousands if were not for the orders for aircraft , spares etc Every country has a bubble , its just that the Uk's has been delayed by the printing of money. UK will crash and when it does we will see what a bubble is !!

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