Dubai property prices may drop another 15 percent to 20 percent this year on an increase in supply as more real estate projects are completed, Credit Suisse Group said, according to a report by Bloomberg.
“We expect residential prices to decline by another 15-20 percent in Dubai as the oversupply gap peaks in 2011,†Dubai- based analyst Ahmed Badr wrote in a report.
“We expect Abu Dhabi’s residential prices to come under pressure as new supply comes online, thus narrowing the price gap with Dubai despite the continued supply shortage and the strong replacement demand.â€
Residential rents in Dubai are set to fall further in 2010 due to increased supply, while vacancy rates in Abu Dhabi’s office market are expected to rise to as much as 10 percent in 2011, according to another report earlier this week, as the oversupply gap peaks in 2011,†Dubai- based analyst Ahmed Badr wrote in a report.
“We expect Abu Dhabi’s residential prices to come under pressure as new supply comes online, thus narrowing the price gap with Dubai despite the continued supply shortage and the strong replacement demand.â€
Residential rents in Dubai are set to fall further in 2010 due to increased supply, while vacancy rates in Abu Dhabi’s office market are expected to rise to as much as 10 percent in 2011, according to another report earlier this week.
