Sunday 3 May 2020

Outlook: Reasons why #Dubai's real estate will remain slumped until 2021 | ZAWYA MENA Edition

Outlook: Reasons why Dubai's real estate will remain slumped until 2021 | ZAWYA MENA Edition: Dubai’s real estate sector will remain in the doldrums at least until 2021, with the coronavirus likely to spur further price declines despite wide-ranging government initiatives to limit the economic impact of what could be the worst global pandemic in a century.

Dubai’s residential property prices fell for a fifth successive year in 2019. Prices then dropped a further 7 percent year-on-year in the first quarter of 2020, according to consultants JLL. As of March 2020, the average price was 929 dirhams per square foot, ValuStrat estimates, which is 52 percent below 2008’s all-time peak.

Many investors had bet that Dubai’s staging of Expo 2020 would inspire another real estate boom and its postponement until October 2021 has added to the gloom.

Yet Lynnette Abad, Director of Data and Research at Property Finder Group, believes the delay will actually benefit Dubai real estate, citing the extra time this will allow to get the site and supporting infrastructure ready.

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