The Department of Economic Development says Dubai’s business confidence index (BCI) rose to 122 points in the third quarter of 2012 from 106 points in the second quarter, reflecting the positive business sentiment and expectations of improvements in sales and business volumes. The performance of the tourism, commerce, retail, hospitality and logistics sectors was especially strong, with estimates placing overall gross domestic droduct (GDP) growth at 4.5% for the whole year.
What does this growing optimism in Dubai’s business circles augur for the city’s real estate market this year? JLL feels the recovery in the property market will be more broad-based but the extent to which poorer quality projects and properties in secondary locations will benefit is likely to be limited by current vacancy levels and upcoming new supply.
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