Monday, 18 January 2021

#UAE News: #Dubai’s Property Glut Means Two More Years of Price Drop for JLL - Bloomberg

UAE News: Dubai’s Property Glut Means Two More Years of Price Drop for JLL - Bloomberg

Dubai home prices will likely extend declines this year and next as the market works to clear an oversupply that’s been a drag on values since 2014, according to property broker JLL.

“We’re really not at the bottom yet,” Dana Salbak, head of Middle East research at JLL, said on Monday at a virtual event. “We’re likely to see single-digit declines between 5% to 8% over the next year given that supply stays under control and developers continue to phase out their projects rather than flood the market.”

A property glut and faltering demand have driven Dubai home prices down by more than 30% since the market peaked seven years ago, a decline made worse by the coronavirus pandemic.

The government has responded by setting up a committee to manage supply and demand as some of the city’s largest developers continued with construction. Some developers have been calling for a moratorium on new projects in Dubai, the Middle East’s tourism and financial hub that’s grown reliant on real estate to power its economy.



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