By Staff writer
CEO of Investment Corporation of Dubai says oversupply of homes will take some time to be absorbed by market
The decline in Dubai property prices will help to keep the emirate competitive as a regional business hub, according to the CEO of Investment Corporation of Dubai.
Mohammed Al Shaibani, also director general of the Dubai Ruler’s Court, told Bloomberg that the oversupply of homes will take some time to be absorbed by the market.
He was quoted as saying that the outlook for real estate prices is more positive over the longer term as Dubai prepares to host the World Expo in 2020 and develops Dubai South, close to Al-Maktoum International airport.
“Real estate has its own mind, you cannot engineer it,” Al Shaibani was quoted as saying. “There is some oversupply that will take time to be absorbed. It’s important we give value for money as in the bigger picture we have to stay competitive.”
Prices had soared between mid-2011 and mid-2014, putting pressure on affordability for many residents.
Earlier this month, Standard & Poor's said real estate prices in Dubai will probably decline as much as 20 percent this year and could keep falling in 2016.
Consultants ValuStrat said property prices in Dubai have declined by more than 10 percent over the past year as investor interest has fallen.
Its third quarter 2015 real estate report said that with a steady decline in prices, stagnant investor interest, delayed supply, stable rents and decreasing sale volumes, next year may witness a plateau in prices, indicating a buyer's market.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Many people I meet are planning to buy next summer so that might be the bottom of this down cycle. Really it started in late 2013 with the doubling of transaction fees, so it is two years old. Most of the declines usually come in the first 12 months of a property down cycle and they are shorter than the upward phases, so this could almost be over...