Monday 28 January 2019

In Dubai, Avalanche of New Homes Extends Stubborn Property Slump - Bloomberg

In #Dubai, Avalanche of New Homes Extends Stubborn Property Slump - Bloomberg:

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. 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 -- hasn’t slowed to meet the weaker demand.

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