Business | Property
Speculation 'a concern' in UAE property market
Standard Chartered's chief executive officer for the Middle East said speculation "is a concern" in pushing property prices higher in the UAE and "not good for the overall economy".
- Bloomberg
- Published: 23:43 August 26, 2008
Dubai: Standard Chartered's chief executive officer for the Middle East said speculation "is a concern" in pushing property prices higher in the UAE and "not good for the overall economy".
"If it was for investment," that would be fine "but people just speculating on property, that does concern me," Shayne Nelson said told Bloomberg Television in Dubai. "I'd rather we manage the boom than manage the bust."
UAE real estate prices may rise 29 per cent in 2008 as demand exceeds supply, the investment bank Al Mal Capital said in March. Property values in the UAE, where record oil revenue has spurred an economic boom and attracted thousands of expatriates, have quadrupled over the last five years, it said.
Dubai's benchmark share index has dropped 13 per cent this month after local media reported that regulators plan new laws aimed at curbing so-called property flipping and the central bank may tighten bank rules for personal loans.
Dubai will require registration of all sales of projects that haven't been built yet with its land department to curb speculation, a local report said yesterday.
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