The slowdown has squeezed the earnings of the emirate's top developers, including DAMAC, whose second-quarter profit fell 87% and whose share price has lost nearly 40% so far this year.
Property prices in key cities across the world increased by 3.5% on average in the second quarter of 2019, led by annual growth of 25% in Xi’an in Chine, the latest international index shows.
Property developers are slashing prices and offering ultra-easy financing to lure customers, while concerned authorities have stepped in with incentives and regulations to revive the crucial sector.
Dubai has traditionally encouraged open, competitive business but heavy oversupply in the property market, an important sector of the economy, has seen residential prices slide by at least a quarter since mid-2014.
The Middle East financial hub's real estate market has steadily contracted since mid-2014 as foreign investor interest cooled.
Warren Buffett’s real estate brokerage is expanding into the Middle East with an office in Dubai.
Dubai's over-supplied property market has steadily fallen since a mid-2014 peak, hurting earnings of the emirate's top developers and forcing construction and engineering firms to cut jobs and halt expansion plans.
There was a rush to complete property sales in Dubai in the last 10 days of 2018 but experts are predicting that both prices and rents are set to keep falling in 2019.
Known for its glittering skyscrapers and luxury villas, the Dubai property market is oversupplied, especially in the residential sector where prices have fallen steadily from a peak in mid-2014.
Prices for prime waterfront properties around the world are on average 40% higher than comparable properties inland, new research has found.
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