Categorized | International

Housing Market in UAE Predicted to Drop Further

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The residential real estate market in the United Arab Emirates is slated to decline even further during the fourth quarter. Prices and sales have already dropped more than forty percent this year, and analysts are now predicting that another drop of more than twenty percent is a real possibility.

The housing market in the United Arab Emirates is struggling most from an abundance of supply. As such, prices on homes and rents have fallen dramatically. Housing sales dropped by more than one thousand homes in the last quarter. With excess supply, and minimal demand, the housing market in the United Arab Emirates has become filled with uncertainty.

Many investors are opting not to invest in the current market, as there is a good chance that they may take a loss on any property that they buy. Even landlords of rental properties are experiencing losses, as they must reduce their rents in order to attract tenants. Rents have fallen nearly twenty percent in the past year.

An ever-increasing supply of homes, and a significantly reduced demand have proved to be a recipe of disaster for the region, as prices and sales continue to drop at unprecedented levels. Real estate analysts are unsure as to when a recovery in the market will actually take place, as there have been few, if any positive signs related to housing prices and sales.

Even international investors are opting to stay away from the residential real estate market in the United Arab Emirates. The region was once booming with both international and local investors. That changed dramatically, however, with the global financial crisis.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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