High energy prices and a Russian influx mean rents and prices are soaring added to the boom-time feeling in Dubai
For some residents, though, the good news is grating.
Annual inflation hit a 14-year high of 7.1% last summer.
Partly due to soaring petrol prices (unlike other Gulf states, the does not subsidise fuel).
Adding to the boom-time feeling For some residents, though, the good news is grating.
Annual inflation hit a 14-year high of 7.1% last summer, partly due to soaring petrol prices (unlike other Gulf states)
It has since dropped to less than 5%, below many other rich economies.
But the headline number does not tell the full story. CBRE Three factors explain the surge.
One is demand, from Russians and other new arrivals. Many seek to live in Dubai’s most fashionable areas.
On Palm Jumeirah, an artificial island in the Gulf, a two-bedroom flat that rented for 100,000 dirhams two years ago can now fetch 215,000 dirhams.
Dubai ’s property market has much to recommend it, from low taxes to a vast pool of would-be renters.
But some wonder if the sector, the backbone of Dubai’s economy, is again becoming a bubble.