Property market ‘will help Dubai combat debt’

Property market ‘will help Dubai combat debt’

Dubai will recover from its debt problems with its flourishing property market.

Summary:

  • Dubai’s prospering real estate market will help get the UAE out of debt
  • The IMF warns that measures are needed to moderate the pace of growth of this sector
  • Huge international interest in Dubai property will help this

Dubai’s property market will help the United Arab Emirates (UAE) pay off its financial deficits, according to the International Monetary Fund (IMF).

It stated that the new developments in the UAE city will  boost the economy and help to cancel these debts, but care should be taken to moderate the market.

Masood Ahmed, Head of the IMF’s Middle East department, said: “It is important looking at the stock of real estate that is going to come into the market to be careful to ensure that the measures are in place to moderate the pace of growth to avoid any risk of another boom-bust cycle.”

There is currently a lot of interest in investing in Dubai properties, with this sector doing particularly well. Emirates 24|7 reported there were long queues of people at Emaar Properties’ investment show in central London last week, demonstrating the popularity of real estate in the UAE among international investors.

Mr Ahmed added that he is not concerned about the UAE paying offs its debts, stating government-related entities have handled their debt since 2009 “quite successfully”, as reported by the Wall Street Journal.

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