UAE 2020 Olympic bid 'to boost property sector'

The United Arab Emirates' (UAE) recent decision to bid for the 2020 Olympic Games and the World Expo will provide a boost to the emirates' real estate sector, according to experts.

Speaking to PropertyWire, Chet Riley of Nomura International pointed out that large-scale events such as the Games tend to spark speculative activity in real estate markets ahead of their launch.

"There is always a run-up in the real estate prices before the event is held," he explained.

Mr Riley's comments were echoed by Robert Mckinnon, managing director of equity research at Al Mal Capital, who added that "increased infrastructure spending" before a key event would have a "positive" impact on the property sector as well.

In related news, Minor Hotel Group chief operating officer Dilip Rajakarier recently suggested to Emirates Business 24/7 that the credit crunch does not appear to be affecting investment in the Middle East, with lower property prices in the UAE attracting buyers.

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