Standard & Poor’s says home prices could fall by as much as 20%, depending on location and investor sentiment. Dubai home prices could fall by as much as 20% this year, according to a top ratings agency.
Standard & Poor’s expects the property market to suffer from increased supply and weakening investor sentiment triggered by the tumbling price of oil.
Earlier this week, property broker JLL predicted that prices and rents in Dubai would drop this year by an average of 10%. Franck Delage and Gregg Lemos-Stein, regional property analysts for S&P, said that prices in the emirate could this year slide by between 10 and 20%, depending on location and investor sentiment.
However, The National pointed out that analysts do not expect a repeat of the crash between 2008 and 2009, when properties lost about half of their value. That is because of the introduction of stopgap government measures that have helped to cool the market for a softer landing.