Descending property prices seen helping Dubai to stay aggressive

 

The decline in Dubai property prices will help to keep the emirate competitive as a regional business hub.

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Mohammed Al Shaibani, Director General of the Dubai Ruler’s Court, told Bloomberg that the oversupply of homes will take some time to be absorbed by the market.

He was quoted as saying that the outlook for real estate prices is more positive over the longer term as Dubai prepares to host the World Expo in 2020 and develops Dubai South, close to Al-Maktoum International airport.

“Real estate has its own mind, you cannot engineer it,” Al Shaibani was quoted as saying. “There is some oversupply that will take time to be absorbed. It’s important we give value for money as in the bigger picture we have to stay competitive.”


Prices had soared between mid-2011 and mid-2014, putting pressure on affordability for many residents.

Earlier this month, Standard & Poor's said real estate prices in Dubai will probably decline as much as 20 percent this year and could keep falling in 2016.


Its third quarter 2015 real estate report said that with a steady decline in prices, stagnant investor interest, delayed supply, stable rents and decreasing sale volumes, next year may witness a plateau in prices, indicating a buyer's market.

 

credit to Arabian Business