Dubai: The strong appreciation in real estate sales prices seen this year in selected areas of Dubai is likely to decelerate by mid-2013 on the back of new offerings in the primary market, says EFG Hermes.
Emaar Properties’ participation in the Mohammad Bin Rashid City project is positive for the market sentiment alone. “However, we think that the success of this venture will be strictly dependent on the availability and cost of financing, which currently remains scarce.”
Next year, also expects Emaar to unveil its plans for the cultural district (now likely a part of the newly announced MBR City) which, an analyst reckons, is likely to be accompanied by a sizeable residential component. “If the project is executed too rapidly, over-building and over-leveraging could once more pose risks to the financial health of the sector.”