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Dubai property prices face 20% hit

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
22/06/2015

Property prices in Dubai could fall by as much as 20% in the next 18 months, according to the ratings agency Standard & Poor’s.

Dubai, the biggest city in the United Arab Emirates (UAE), has seen property prices increase in the past three years but should prepare itself for a slump before the end of 2016.

Standard & Poor’s warned that increasing supply and lower demand would lead to a fall in property prices of between 10% and 20%.

However, the ratings agency is confident the emirate state will be able to weather any drop in house prices in the next 18 months.

A decline in oil prices and an uncertain local stock market were highlighted as reasons why investors are staying away from Dubai.

“Real estate companies in the UAE are better armed to deal with the current slowdown and should be able to absorb it with limited ratings impact,” S&P credit analyst Franck Delage said in the report.

In the years since Dubai’s last property crash in 2009 regulators have taken steps to avoid any similar problems, S&P added.


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