Wednesday, 19 October 2011

UAE house prices, rents to drop 20% more - Maktoob News

Property prices and rents in the United Arab Emirates may fall a further 20 percent in 2011 and 2012 due to oversupply, financial services firm Arqaam Capital said.

"We think there is a further leg down to the UAE property market before residential prices and rents recover. We see a further 15 percent to 20 percent in downside to prices and rents in the financial year 2011-201212," analyst Mohammad Kamal wrote in Arqaam Capital's report on UAE real estate.

"Genuine revival triggers will only appear in a broad macroeconomic recovery, via job creation, a rise in discretionary spending, continued regulatory evolution, resumed mortgage lending, and growth in tourist flows," Kamal said.

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