Billionaire Sawiris Wouldn’t Buy Oversupplied Dubai Property - Bloomberg
Egyptian billionaire Naguib Sawiris wouldn’t buy real estate in Dubai as the city’s supply glut continues to hold back prices.
“There is a problem in Dubai,” Sawiris said in a Bloomberg TV interview. “People don’t stop building at all, I mean they keep on building so you don’t take a breath to allow the market to appreciate.”
An imbalance between supply and demand in the Middle East’s business hub has led prices to drop more than a third since 2014, leading the government to set up a committee in 2019 to tackle the oversupply. The pandemic exacerbated the issue last year as many expatriates left Dubai, depressing demand further.
This year has brought signs of a rebound, however. Average home prices rose at their fastest pace since 2015, with transaction volumes surging nearly 77% in August from a year earlier, according to real estate adviser CBRE Group Inc. Dubai is also hosting the World Expo 2020, which it expects will attract foreign capital and revive the economy.
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