Dubai: dubai real estate prices S&P Global Ratings said there has been a strong rebound from record lows at the end of 2020, but demand remains uneven and oversupply of residential properties will put pressure on prices in the long run, making the recovery fragile.
real estate investment firm CBRE Group It said last week that average residential property prices in Dubai rose 4.4% in the 12 months of August, the highest annual increase since February 2015, but the continuing fall in apartment rents indicated continued weakness in the long-troubled sector. Gave.
“With rapid pre-sales in residential real estate demand and correction in prices, premium developers have benefited significantly,” S&P said.
It said market data shows that apartments, which make up 85-90% of properties, experienced a price increase of around 6% in the second quarter. Rates for villas have also risen while apartment rents are still low.
Reuters reported in March that the luxury segment of Dubai’s property market has received a boost since last year’s sharp downturn, but the overall recovery of real estate is still a long way off.
Long-term economic trends, even before the coronavirus pandemic United Arab Emirates Oil prices had been sluggish since the fall in 2014-15. Supply has outpaced demand for new homes and apartments for years in a market where the majority of the population is foreign, many of whom have moved during the pandemic.
Real estate prices are at a low point in the cycle, S&P said, with a rebound expected in 2021-2022, driven by improving consumer sentiment, rising oil and gas prices, higher vaccination rates in Dubai and the city’s host supported by demand. world expo, delayed by one year due to the pandemic.
“In the long run, we believe that demand for residential properties will depend on the success of recent government initiatives targeting population growth, such as new visas and more liberal social legislation,” S&P said.
real estate investment firm CBRE Group It said last week that average residential property prices in Dubai rose 4.4% in the 12 months of August, the highest annual increase since February 2015, but the continuing fall in apartment rents indicated continued weakness in the long-troubled sector. Gave.
“With rapid pre-sales in residential real estate demand and correction in prices, premium developers have benefited significantly,” S&P said.
It said market data shows that apartments, which make up 85-90% of properties, experienced a price increase of around 6% in the second quarter. Rates for villas have also risen while apartment rents are still low.
Reuters reported in March that the luxury segment of Dubai’s property market has received a boost since last year’s sharp downturn, but the overall recovery of real estate is still a long way off.
Long-term economic trends, even before the coronavirus pandemic United Arab Emirates Oil prices had been sluggish since the fall in 2014-15. Supply has outpaced demand for new homes and apartments for years in a market where the majority of the population is foreign, many of whom have moved during the pandemic.
Real estate prices are at a low point in the cycle, S&P said, with a rebound expected in 2021-2022, driven by improving consumer sentiment, rising oil and gas prices, higher vaccination rates in Dubai and the city’s host supported by demand. world expo, delayed by one year due to the pandemic.
“In the long run, we believe that demand for residential properties will depend on the success of recent government initiatives targeting population growth, such as new visas and more liberal social legislation,” S&P said.
.