Dubai clubs together as shares grow after Berlusconi exit

Share rose this week as Dubai clubs together in the wake of Silvio Berlusconi’s resignation offer this week.

The Italian Prime Minister’s offer to retire as the country’s economy caused wide concern was well received by the rest of the eurozone, reassuring investors across all markets. As a resuly, Dubai’s shares advanced “to the highest this month”, reports Bloomberg.

The developers of the tallest skyscraper in the world, Emaar Properties PJSC, saw a strong increase of 2.3 per cent, as activity resumed after Eid with traders in a good mood.

“An absence of regional news means we will continue to look at developments in Europe,” Dubai’s Daman Investments told Bloomberg: “We expect some catch up for the Middle East markets re-opening today post the Eid holiday, but on low volumes as many locals will stay away for the whole week.”

It’s one of two positive signs in Dubai this week, as demand for the country’s villas stayed strong amid a downturned market.

“Villa properties continue to outperform apartments,” CBRE told OPP, adding that limited supply was driving strong demand for high-end properties.

According to the latest CBRE research, 1,459 transactions occurred during the third quarter of the year, a drop of 45 per cent compared to the 2,649 in the same period in 2010. As sales of Dubai property fall, increasing shares and strong villa demand will provide some reassurance for many of the country’s developers and agents.