Market has further room to expand, says Citigroup

Dubai residential and office prices remain well below global benchmarks from cities, which have evolved into regional hubs for services sectors such as London, Hong Kong and Singapore, according to a Citigroup report. "Average Dubai pricing levels remain below global ceilings. Government-backed developers and their suppliers remain an attractive way to get exposure. They are more able to access scarce capital and raw materials in order to complete their projects on time unlike private developers who sold most of their project off-plan and are now suffering completion delays and budget over-runs," Citi Investment Research said yesterday in a report on Dubai real estate market. Demand and supply are balanced due to the value chain control by the government, population growth and Dubai's relative attractions for expats... [read full story]