UAE property crisis fears overblown: HSBC

Dubai

FEARS of a crisis in the United Arab Emirates real estate market are "overblown" because the impact of weaker currencies and slowdown in transaction numbers is lower than reports suggest, HSBC Holdings plc said.

Transactions fell by 15 per cent in the year through August for the UAE and sales prices are down 9 per cent in Dubai, HSBC said in a research note published on Monday. The main foreign buyers of Dubai property are Indians, Britons, Pakistanis and Saudis, who have not been impacted by weakening currencies, HSBC said. The possible removal of sanctions on Iranian buyers could also lift demand for Dubai real estate, it added. "Two myths need to be debunked - transactions are down just 20 per cent compared to some reports of more than 50 per cent, and most currencies have not fallen significantly, …