Interpreting Middle East Economic News and Analyzing Market Trends

Is another real estate bubble forming in Dubai?

Rents are up as much as 40% in some areas of Dubai and the stock market is up over 50% so far this year… add this to the 100% rise in the stock market in 2013 and you can see how things seem to be getting out of hand again.

   

Since the rise in real estate values, rents and the stock market have gone up so fast over the past 15 months, we think it’s obvious that another speculative bubble is forming.  This bubble is driven by positive sentiment as well as cheap money, which has been floating around the world for over five years now.

 

What will trigger the pop is anyone’s guess.