Dubai real estate market may bottom out next year, S&P says
Add BT as a preferred sourceDeeperDive is a beta AI feature. Refer to full articles for the facts.
Dubai
PROPERTY market in Dubai may "bottom out" next year after weathering a tough 2020, said S&P Global Ratings.
"We already had a supply and demand imbalance in the market even before the pandemic, and after Covid-19 the situation just got worse," S&P analyst Sapna Jagtiani said on Tuesday. Prices of residential and office spaces in the city are expected to "somewhere bottom out in 2022", she added.
A property glut and faltering demand in the Middle East's business hub have driven prices down by more than a third since the market peaked some seven years ago. The decline has been made worse by the coronavirus pandemic.
Property broker JLL said in January that Dubai developers are likely to continue a high supply momentum this year, an increase that means two more years of price declines.
The chief of Damac Properties PJSC, one of Dubai's largest developers, said last month it will take at least one to two years for the real estate market to get out of its downturn.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Dubai has suffered the steepest population shrinkage in the Gulf last year, while its gross domestic product contracted around 11 per cent, S&P estimates showed. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
‘We’ve seen the worst-case scenario’: How Indonesia’s Cinema XXI navigated crisis and change
Higher costs, lower returns: Why are Singaporeans still betting on real estate?
S-E Asia tourism takes hit from Middle East crisis, but intra-regional travel could spell hope
Auditors flag uncertainty on Katrina Group’s ability to continue as a going concern
