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Dubai property slump has 2 more years to run

Dubai

DUBAI'S homeowners will have to wait at least a couple more years for a long-running property slump to hit bottom as developers put a record number of new residences on the market this year.

About 31,500 homes will probably be completed this year, more than twice the city's average annual demand over the last five years, according to Craig Plumb, head of Middle East research at broker Jones Lang Lasalle. That compares with the 22,000 homes finished in 2018.

The Dubai property market's long decline since a peak in October 2014 has defied all predictions of a rebound over the last several years.

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While an oil price slump, fiscal austerity in Saudi Arabia and a strong dollar have driven away potential buyers, construction - much of it by state controlled developers - has not slowed to meet the weaker demand.

Dubai's residential values have slid about 25 per cent from the 2014 peak, including a 10 per cent drop last year. JLL expects values to decline by 5 per cent to 10 per cent this year.

Mr Plumb said he does not expect the market to hit bottom until 2021. BLOOMBERG