The UAE is experiencing its latest real estate slump along with other parts of the Middle East, largely due to oversupply and lower oil prices.
Tuesday 08, January 2019
Savills Middle East’s Chief Executive said that residential real estate prices in Dubai could fall by five to 10 per cent in 2019, weakened by new supply, a strong dollar and lower oil prices, reported Reuters.
Steve Morgan, the Chief Executive of Savills, said that while the latest fall in house prices has not come close to the more than 50 per cent plunge seen in 2009-2010, residential prices fell by six to 10 per cent in 2018.
Dubai's over-supplied property market has steadily fallen since a mid-2014 peak, affecting earnings of top developers, forcing construction and engineering firms to cut jobs and halt expansion plans.
The dirham is pegged to the dollar, making the country more expensive for those holding other currencies, while oil is a major driver of regional wealth.