Dubai: Interconnectedness
Source: REIDIN , Author: Posted by BI-ME staff
Posted: Wed September 13, 2017 1:13 pm

UAE. An analysis of GDP growth rates of a basket of cities against the World GDP reveals that Dubai and Hong Kong's GDP growth rates have a high correlation with the World. Both cities are financial hubs and the centers of trade and commerce, making them heavily influenced by world markets. This correlation then trickles down into money flows and therefore financial assets.

In the equity markets, we can witness that UK and Hong Kong have the highest correlations, whereas Pakistan and USA have the lowest. Dubai's correlation appears to be in the middle, indicating that foreign equity movements are moderately influential to the domestic capital markets, as opposed to India, Hong Kong and the UK.



In the real estate markets, Dubai has similar correlation strengths to the world index to that of New York and London. This signifies that Dubai's status as a global property hot spot has rapidly increased.

In order to ascertain clues to the future of Dubai's real estate markets, it's critical for investors to look at the health of international markets; not merely from a perspective of money flows but also in terms of valuations.

We opine that Dubai is moving along this trajectory of market maturation, a process that is already being reflected in its price points.
 
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Photo Caption: For illustrative purposes only (File photo)

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REIDIN is the leading real estate information company focusing on emerging markets. REIDIN offers intelligent and user-friendly online information solutions helping professionals access relevant data and information in a timely and cost effective basis.

For more information, pleased visit www.reidin.com

About Unitas
Unitas believes in in-depth planning and discipline as a mechanism to identify and exploit market discrepancy and capitalize on diversified revenue streams. The purpose of Unitas is to manage, direct, and create wealth for our clients.

For more information, please visit www.unitasconsultancy.com

 

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