Logo
  • Order call
  • Call management

Property type
No. of bedrooms
Area
Show offers

Dubai property prices recovery will take much longer than 2020

25.02.2020
Dubai property prices recovery will take much longer than 2020
The expected further market decline can even beat the bottom of the previous slump in 2010-2011, said Standards and Poor’s Global rating report.

Taking to account a huge even oversupply of new units to the market, and also the fact that major Dubai developers suffered losses in 2019, property prices this year could easily deepen down to another 5 to 10 percent, says S&P Global ratings Report.

This is exactly the level of decline this ratings agency had forecasted last year for 2020. "We are seeing prices approach a level which we saw at the bottom of the previous cycle in 2010-2011, and when you adjust for inflation and incentives that you get when you buy off-plan products, it is probably even lower," said Sapna Jagtiani from S&P Global Ratings.

“We are expecting a year of very high delivery cycle. We are still seeing launches with small deposits and long-term payment plans, which is really not helping the market,” she added.

S&P expects that at least 120,000 new units to enter the Dubai real estate market in the next couple of years. According to real estate insights platform, Property Finder, from the 90,000 units that are scheduled for completion in 2020, the real level of materialization cut this number to no more than 40,000 to 50,000 units to be handed over in Dubai this year.

As imexre.com had previously reported, ValuStrat consultancy, on its part, predicted that about 133,000 residential units are under construction in Dubai and expected to be delivered in 3 to 5 years.

And speaking of the Expo 2020 factor, experts admit that the event could bring a temporary easing to prices and improve market sentiments for a while, but oversupply could become a problem again after 2020, S&P said, noting hospitality and retail sector will suffer the most.

"What is evident is that we have a huge pipeline of deliveries for the next two years. Say 120,000 units are expected in the next couple of years. Presumably, most of them are pre-sold, which means any halt to supply, if at all, will come only after 2022," said Sapna Jagtiani.

As imexre.com has also noted before, Hussain Sajwani, chairman of Dubai’s top developer Damac, recently also said that the emirate’s troubled real estate market will not recover unless developers stop new residential projects at least for two years.

To always stay up to date with the latest analytics data and real estate prices in Dubai, subscribe to our newsletter using the form below. And in order to sell, lease or buy/ rent housing or commercial properties in Dubai, contact IMEX Real Estate. Our contacts:

Tel. in Dubai, UAE: +971 (50) 2528188 (Whatsapp, Viber, Telegram)

Toll Free Dubai: 800-IMEX (800-4639)

IMEX REAL ESTATE BROKER LLC, UAE

Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE

Email: pm@IMEXre.com

Latest Availability
RENT
125,000 / year
Ref.No: OF1209
Office
1,655 ft2
76 AED/ft2
RENT
58,500 / year
Ref.No: OF662
Office
1,300 ft2
45 AED/ft2
SALE
6,800,000
Ref.No: AP1113
3BR Apt
3,003 ft2
2,264 AED/ft2
Latest property news
Send us an enquiry or request a call back
Your name *
Phone
E-mail *
Your message *
*- indicates required
Request a call back
SOGA1  SOGA2
Call management
SOGA1  SOGA2
Lease process (Rent out)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.
Real estate search.

Up to 5 days

Real estate search.

Selection of optimal options.

Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Property Selection

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Customer charges:
  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration
Additional services:

Property management

Sales Process
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

None

the management process
Contract of the owner and agency

1 hour

Contract of the owner and agency
Rendering of management services

1 year

Rendering of management services
Reporting

1 day

Reporting
Expenses of the owner:

5% of the annual rental price

Additional services:

None

Investment Process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Selection of optimal investment options

From 3 days

Selection of optimal investment options
Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Expenses of the investor:
  • 2% when investing in the secondary market
  • 0% when investing in a new building
  • 4% - registration
Additional services:

Property management