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Dubai home prices to fall further in 2019 due to demand-supply gap: S&P

The rating agency said the residential property market is unlikely to see a meaningful recovery in 2021

Reuters  |  Dubai 

Dubai. Photo: Shutterstock
Photo: Shutterstock

Rating agency Standard & Poor’s said on Tuesday it expects Dubai prices to fall further in 2019 due to a continued gap between supply and demand, before a gradual stabilization in 2020.

“We expect the Dubai residential real estate market to fare no better in 2019 than in 2018, in the base case scenario that Global Ratings uses in its rating analysis on entities in the emirate,” it said in a report.

It said the market is unlikely to see a meaningful recovery in 2021. Since 2014, prices have fallen 25 percent to 33 percent in nominal terms, the report said citing property consultancy Asteco.

First Published: Tue, February 19 2019. 13:06 IST
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