Economics
Dubai’s ‘Long Decline’ in Property Prices Isn’t Over Yet for S&P
- S&P warns ‘more pronounced’ price drop possible on supply glut
- Some developers have posted surprise growth in 2018 earnings
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The worst is yet to come for Dubai’s real estate after prices already plunged close to levels last seen during a crash a decade ago, according to S&P Global Ratings.
A supply glut has built up even as demand faltered, feeding what S&P is calling the market’s “long decline” that’s seen prices and rents drop by as much as a third since peaking in 2014. The worries go beyond the property sector in Dubai, which relies on real estate and construction for 14 percent of its economic output, with the rating company saying it’s taking a negative view of industries ranging from banks to insurance.