House prices in Dubai go up

Investors in the Dubai property market could be in line to collect significant capital gains, experts have suggested.

According to investment bank EFG-Hermes, house price growth in the emirate has exceeded initial expectations this year, reports Bloomberg.

Indeed, the group said values have gone up by more than 14% during the year to date - about 10% higher than the amount which was first anticipated.

EFG-Hermes has attributed this development to demand outstripping the available level of supply.

This follows a similar development last year, when house price inflation exceeded estimates of 10 to 15% and rose by 18.9%.

The organisation added that high prices are also being supported by problems in the construction sector, such as the rising cost of raw materials.

Dubai may also be an attractive option for property buyers as financial authorities in the United Arab Emirates have recently expressed confidence in its ability to withstand the current turmoil on the markets.

Earlier this week, the country's central bank said it is unlikely to be affected by the recent collapse of Lehman Brothers.

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