Coronavirus to drive steeper decline in property prices, more rent freezes in Dubai: S&P | ZAWYA MENA Edition:
As the coronavirus crisis continues to ravage economies worldwide, home prices in Dubai will decline more steeply and landlords will be forced to freeze rents, according to the latest analysis.
S&P has also lowered its ratings on some major Dubai-based real estate firms, citing that the current health pandemic is likely to reduce international and local demand for property in the emirate.
Dubai’s real estate has been struggling to cope with excess residential supply, which has caused prices and rents to decline. In 2019, more than 35,000 homes were still completed, the highest number delivered in a single year in the emirate. There were expectations that that high supply could be absorbed by the increase in demand during the Expo 2020 later this year.
However, with business activity and non-essential services now grinding to a halt due to the outbreak, it is not clear yet if the global event will push through as scheduled or boost demand.
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