Property expert calls out possible property market bubble burst in Dubai
The CEO and founder of propertyfinder.ae said Dubai is in danger of having another artificial real estate price bubble. The cause of this future problem is attributed to speculators that continue to flip assets in the Dubai property market.
According to Michael Lahyani, "Speculators are not helping the market and if cash-rich investors continue to acquire assets and flip units, the market will be led to another artificial price bubble. Ultimately, prices will inflate so much that the end users we are looking for will not be able to buy."
He made these comments in response to recent reports of the thrust of the Dubai government to establish a judicial committee that would oversee the liquidation of property projects which have been mothballed or have stalled in the country.
Another party making the same observation is the International Monetary Fund, as it warned Dubai of the need to again intervene in its property market to avoid a boom and bust cycle similar to what happened four years ago which pushed the country at the brink of default.