Cityscape is also an economic indicator

The number of companies showcasing property at this year's Cityscape Global property show in Dubai has increased by nearly a quarter from the previous year as house prices in the emirate surge.

As house prices in the emirate surge, the number of companies showcasing property at this year's Cityscape in Dubai has increased by nearly a third.

According to the event organiser Informa, the number of exhibitors showcasing their schemes at the show stands at 223, a 29.6 per cent increase on the 172 which rented stands a year ago.

Informa said that this year’s exhibition is also taking over two additional halls at the Dubai International Convention and Exhibition Centre, increasing the number of halls from four to six and increasing the amount of space used for the exhibition from 20,000 square metres to 25,000 square metres.

The number of visitors Informa expects at the show is also set to increase, from around 21,000 last year to 25,000 this year.

Property brokers report that average house prices in the emirate are rising at some of the fastest levels in the world, prompting speculation that the market could again be overheating and a new property bubble could be forming in the emirate.

According to figures from Asteco released last week, average apartment prices rose 42 per cent during the 12 months to the end of September and villa prices rose 26 per cent.

Cityscape has often been seen as a bellwether for the emirate’s volatile property market. During the boom years of 2007 and 2008 around 40,000 people flocked to the exhibition as investors queued to slap down deposits on unbuilt schemes.

But when the market crashed in 2009 and prices tumbled by as much as 60 per cent, visitor numbers dried up too.

By 2011 just 17,000 visitors were registered to attend the show and the emphasis was shifted to include more exhibitors from overseas.

The numbers began increasing again last year as the market showed signs of recovery.

Wouter Molman, the exhibition director for Cityscape Global, said that this year’s show was set to have more of an emphasis on domestic schemes. He said that although Dubai developers account for roughly half the stands by number, the fact that they are taking bigger stands means that they account for 65 per cent of the exhibition space.

“The show has grown substantially for the second year in a row and sold out six weeks before the event, mirroring the market sentiment which has started to gain momentum early 2012,” Mr Molman said.