Tuesday 19 February 2019

No upturn in sight for #Dubai real estate by 2021- S&P | ZAWYA MENA Edition

No upturn in sight for Dubai real estate by 2021- S&P | ZAWYA MENA Edition:

A stabilisation of Dubai's real estate market is only likely to begin in 2020, and no upside in the market is forecast for 2021, according to ratings agency S&P Global, which warned that its already "grim" forecast could worsen if government-backed developers continue to release new stock.

The agency said in a note released on Monday that its base case scenario is for Dubai's property market to continue a decline this year that began in mid-2014, with values expected to fall by a further 5-10 percent, before stabilising next year and flatlining in 2021.

However, it added that under a “stress case” scenario based partly on increasing supply, prices could fall by up to 15 percent this year and up to 10 percent in 2020, placing more pressure on the emirate's sovereign credit profile and its banks.

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