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.
In Dubai, a flurry of new development is rising to meet demand and stabilizing a volatile market.
Warren Buffett’s real estate brokerage is expanding into the Middle East with an office in Dubai.
Sales of apartments in Abu Dhabi fell by 9% on average in 2018 while villas sales were down by 4%, according to the latest residential real estate report for the Emirate.
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 have been falling quarter-on-quarter almost continually since the start of 2017 because of a worsening supply/demand balance.
Opt in here