Dubai’s property market may not see ‘meaningful recovery’ in near term – S&P

Dubai’s real estate market may not see a meaningful recovery in the near term because of “supply-demand imbalance,” according to S&P Global Ratings.

S&P said it believes residential prices have fallen by about 10 per cent since its last report on the emirate’s property sector in February. “The outlook remains weak in the fourth quarter as new supply hits the market.”

“We believe Expo 2020, just on the back of potential visitor flows to the emirate, will ease temporary pressures on hotels and retailers,” credit analyst Sapna Jagtiani said in a note. “However, it is unlikely to materially improve long-term conditions in the real estate sector.”