Market News 17/10/2022

  • US Inflation rose more than expected in September
    • Inflation was 8.2%, coming in higher than most forecasts
    • Most worryingly, ‘Core’ inflation was 6.6% which is the highest since 1982
    • Makes it almost certain that rates will increase by 75 bps in November, and more likely that the Federal Reserve will make the same 75 bps increase in December
    • Direct impact on mortgage rates here in the UAE
  • Real Estate Bubble Risk ‘Low’ in Dubai – UBS
    • In a survey of 25 cities, Dubai was the second lowest bubble risk (after Warsaw)
    • Average rate still 25% below its 2014 peak
    • Forecast Dubai prices will continue to grow for the next few months before slowing
    • Toronto and Frankfurt were top of the list
  • High Dubai Villa Rents ‘A Problem’ – Bloomberg
    • Bloomberg article says the explosive growth in rentals in villa communities such as the Palm make the city less competitive when looking to attract international residents

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