Low residential rental returns in Abu Dhabi and Dubai might suggest growing imbalances and overheating in the real estate sector, the United Arab Emirates central bank said on Sunday, in the first official warning about property costs.
House costs in Dubai real estate, which almost defaulted on its debt in 2009 after a property bubble burst, soared 27.7% from a year-ago in January-March, leading the international ranks for a fourth straight quarter, according to consultancy Knight Frank. In some places, prices are back near pre-crisis levels. Within an annual fiscal equilibrium report, the central bank said there was no buildup of vulnerabilities in the banking program, and it failed to signal that it planned to take any real action towards the Dubai real estate market.
House costs in Dubai real estate, which almost defaulted on its debt in 2009 after a property bubble burst, soared 27.7% from a year-ago in January-March, leading the international ranks for a fourth straight quarter, according to consultancy Knight Frank. In some places, prices are back near pre-crisis levels. Within an annual fiscal equilibrium report, the central bank said there was no buildup of vulnerabilities in the banking program, and it failed to signal that it planned to take any real action towards the Dubai real estate market.