Dubai: Dubai real estate prices have been very rebounded from a low record at the end of 2020, but uneven requests and excess supply of housing properties will reduce prices in the long run, making fragile recovery, the word global ranking S & P.
Real estate investment company CBre Group said Last week that the average residential property price in Dubai rose 4.4% in 12 months to August, the highest annual growth since February 2015, but a decline in sustainable apartment rental marked sustainable weakness in the sector.
“Rebound in demand for housing real estate has benefited premium developers with a surge in pre-sales and price increases,” said S & P.
said market data showed that apartments, which formed 85-90% of the property, experienced a price increase of around 6% In the second quarter.
The rates for the villa have also been accelerated while renting for apartments are still lagging behind.
Reuters reported in March that the luxury segment of the Dubai property market has received encouragement since last year’s sharp decline, but the overall recovery of real estate is still far from.
Even before the Pandemic Coronavirus, the long-term economic trend in the United Arab Emirates has been slow since the accident of the 2014-15 oil price.
Supply has exceeded demand for new homes and apartments for years in the market where most residents are foreigners, many of them go during a pandemic.
Real estate prices are at a low point in the cycle, S & P said, expecting a rebound at 2021-2022 supported by demand driven by increased consumer sentiment, an increase in oil and gas prices, high vaccination rates in Dubai, and hosting cities in the world of expo , postponed by a year because of a pandemic.
“In the long run, we believe that demand for residential property will depend on …
on the success of the recent government initiative that targets an increase in population, such as new visas and more liberal social laws,” S & P.
said.
Dubai real estate recovery ‘fragile’ and uneven, said S & P
