Paste your Google Webmaster Tools verification code here
April 27, 2016 | 14:30 | Dubai
For the United Arab Emirates (UAE) real estate sector, 2015 was the first year since the recession in which prices declined. Dubai’s residential real estate prices dropped 10% – 13% on average according to industry experts, and most areas of the city were affected. The city’s property developers delivered 9,400 units last year, slightly down from the 11,000 in 2014, according to REIDIN. For the coming year, S&P Rating Services does not see any sign of market improvement for the UAE real estate sector, despite housing affordability improving from the current price environment. The pressures are threefold:
S&P opines that the lifting of geopolitical restrictions, such the sanctions on Russia and Iran, could strongly benefit the recovery of the UAE property market. This would open new investment flows into the regions’ real estate markets and partly compensate for the softening demand from other countries. A rebound in oil prices as well as weakening U.S. dollar would also likely reverse the negative trend.