#Dubai's `Long Decline' in Property Prices Isn't Over Yet for S&P - Bloomberg

Dubai's `Long Decline' in Property Prices Isn't Over Yet for S&P - Bloomberg:

The worst is yet to come for Dubai’s real estate after prices already plunged close to levels last seen during a crash a decade ago, according to S&P Global Ratings.

A supply glut has built up even as demand faltered, feeding what S&P is calling the market’s “long decline” that’s seen prices and rents drop by as much as a third since peaking in 2014. The worries go beyond the property sector in Dubai, which relies on real estate and construction for 14 percent of its economic output, with the rating company saying it’s taking a negative view of industries ranging from banks to insurance.

“Given the continued gap between supply and demand, in our base case we expect prices to fall a further 5 percent to 10 percent in 2019 before a gradual stabilization in 2020, though without a meaningful recovery in 2021,” S&P analyst Sapna Jagtiani said in a report.