Dubai property prices will fall further in 2020; "recovery will take a long time" | ZAWYA MENA Edition:
With a massive guaranteed oversupply of properties and top developers taking losses in 2019, real estate prices this year could fall another 5 to 10 percent.
S&P Global ratings said for 2020, it could see another a potential decline of 5 to 10 percent, a stress case that the ratings agency had outlined last year for 2020.
"We are seeing prices approach a level which we saw at the bottom of the previous cycle in 2010-2011, and when you adjust for inflation and incentives that you get when you buy off-plan products, it is probably even lower," Sapna Jagtiani, Associate Director, Corporate Ratings, S&P Global Ratings said.
"The market is already struggling, and we are expecting a year of very high delivery cycle. We are still seeing launches with small deposits and long-term payment plans, which is really not helping the market, adding the burden of funding such developments on the balance sheet of the developers. So we are seeing credit weakening on the side," Jagtiani added.
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