Morgan Stanley: habitation in Dubai will soon fall in price
From the beginning of 2007 prices for real estate in Dubai have grown on 79 % and by 2010, most likely, will fall to 10 % as the offer in the market today considerably exceeds the demand.
Such forecast has been made by investing bank Morgan Stanley. In the report of bank it is spoken, that sharper correction of Emirates real estate sector can render wave effect on neighbors across the Near East, and stock quotes of 12 regional companies of the real estate will decrease on the average on 35 %.
Under the worst script, the prices for the real estate in Dubai will follow in the steps of Singapore. We shall remind that there in the end of 90th years prices have fallen on 80 % within one year.
In the first half-year of 2008 prices for habitation in the Emirates have grown on 25 % and it was promoted by such factors as demand, gamble and growth of cost of construction. In 2009, under forecasts of bank, prices will start to feel pressure of surplus of the offer and by 2010 can already decrease on 10 %.
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