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No end to Dubai property boom

Jun 03 2007 16:16

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Dubai - The burgeoning property boom in Dubai looks set to continue until at least 2010, a report released on Sunday said, dismissing widespread forecasts of a looming correction in property prices.

The report by Dubai-based businessman Fouad Bardawil, for the Middle East Economic Digest (MEED), estimated that 181 000 new residential units would be needed by 2010 but that only 175 000 would be available.

MEED said demand would outstrip supply because of continuing population growth in the wealthy emirate, one of seven comprising the United Arab Emirates.

It said Dubai's population could rise to 2.5 million by 2010 from 1.4 million in 2006 due to expansion in the business sector.

A falling occupancy rate was also a factor behind the demand for more housing, MEED said, predicting that the average number of residents per unit by 2010 would be 5.5, down from 6 in 2000.

 
 
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