Dubai: Though property values are yet to touch bottom, it’s still a good time to pick them at a “fair value”. So says the Swiss bank UBS in its latest “Global Real Estate Bubble Index”.
“Affordability has improved even though incomes have declined amid slower economic growth,” the report says about Dubai’s real estate scenario.
“Despite posting the strongest population growth among all cities in the study, the market remains oversupplied.
“Easier visa requirements and next year’s Expo should support the market.”
Property prices are down 35 per cent from their mid-2014 levels. “We expect prices to find a bottom soon but we would still encourage all investors to be diligent,” said Ali Janoudi, Head Central and Eastern Europe, the Middle East and Africa at UBS Global Wealth Management.
In bubble mode
The greatest risk of housing markets slipping into bubble territory are in Munich, followed by Toronto, Hong Kong and Amsterdam. Frankfurt, Vancouver and Paris too are at risk, “while major imbalances characterise Zurich, London, San Francisco, Tokyo and Stockholm,” the report adds.
“Valuations are stretched in Los Angeles, Sydney, Geneva and New York. By contrast, property markets in Singapore, Boston and Milan seem fairly valued while Chicago remains undervalued.”