Residential prices have fallen by 10% since February 2019, S&P report finds
Dubai’s real estate market could find it difficult to achieve a meaningful recovery in the near future due to a ‘supply-demand imbalance’, a credit analyst from S&P Global Ratings has said.
In a report published on RatingsDirect, entitled ‘Where is the Dubai Real Estate Market Headed?’, the ratings agency said that it believes residential prices have fallen by around 10% since its last report on Dubai’s real estate sector in February 2019.
“The outlook remains weak in the fourth quarter as new supply hits the market,” Sapna Jagtiani, S&P Global Ratings credit analyst, said, adding that the report addresses some of the questions investors have asked about Dubai’s real estate market and its prospects.
“We believe Expo 2020, just on the back of potential visitor flows to the emirate, will ease temporary pressures on hotels and retailers. However, it is unlikely to materially improve long-term conditions in the real estate sector,” she added.
“We expect prices to remain under pressure during 2019-2020, and don’t foresee a meaningful recovery in the near term due to the current supply-demand imbalance,” Jagtiani concluded.