While Dubai's economic environment is improving rapidly, the real estate sector is likely to go through more pain and fall by a further 15-20% before bottoming out, says Dubai-based Rasmala.
"We believe the Dubai residential market may see delivery of 30,000-35,000 units of apartments and villas combined in 2H11-2013, upon an existing supply base of roughly 322,000 units," said Rasmala analysts in a note. "This translates into roughly 10% incremental supply, which we believe would further depress real state asset values."
The investment bank believes that Dubai residential sales may fall from their current levels of AED750 per square feet to AED600-650 - or 15-20%.
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