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Dubai property prices second highest in the world

The moment that most analysts have been predicting appears to have come one step closer, according to a report that analysed the prices of the various property markets in the world.

What the report found was that after the West End community in London, houses within the Dubai property market were the most expensive in the world.

This is not terribly surprising in light of the supply shortages within the Dubai housing market. A combination of increasing demand both from overseas housing investors as well as people brought into the country to work has ultimately meant a runaway inflation afflicting the housing markets in Dubai.

A recent shortage of raw materials to build with in the Gulf region did not make matters any better and so according to most of the analysts what is happening right now in Dubai is not something that is particularly surprising.

While the current housing shortage continues, it is very unlikely that the Dubai property prices will come down anytime soon. Even with the government putting a cap on rents in 2006, 2007 and once again in 2008, the market prices were able to soar to the second most expensive in the world, eclipsing many of the most developed cities in the history of the world's existence.

With low supplies of building materials available leading to high prices for basic commodities, it is very unlikely that the housing shortage will end in 2008. This rather unique combination of events in the Dubai housing market has made things very good for investors, as they are able to charge high rents that people must accept because of the lack of residential space available.

Already, even the smallest overseas individual property investment in Dubai has come with massive returns because of the housing shortage in the Emirate and these profits are expected to continue for people that can get their hands on buy-to-let property.

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