Dubai Property Market
The current state of the Dubai Property Market is not overwhelmingly good if a report in today’s ‘The National‘ Business section is to be believed. The report states that there are now approximately 6,000 homes sitting empty in the Dubai property market. It puts the reasons for the backlog of empty property down to delays in handing over completed properties and a severe downturn in market sentiment in 2015.
There have been various spats between invested parties as to why there is such a glut of unoccupied property in the Emirate. Estate agents claim that the amount of property to complete in 2015 was overstated by developers. Developers, for their part, claim that it is not their fault that handovers are taking so long.
Estate agents also claim that it is not because the property market has shrunk remarkably over the 12 months since Q4 2014. In reality there is probably a little truth in both arguments. The market is certainly not as robust as it was 12 months ago. This means that it is more difficult for developers to get final payments from clients as they see the value of their properties decline.
The discussion has become rather heated as Damac Properties accused property brokerages in Dubai of ‘professional malpractice’ for publishing Dubai property market reports forecasting excess supply. Damac claims this has had ‘a detrimental effect on the generally positive sentiment in the market.’
Damac, however, seem to be alone in thinking that the market is in any sort of positive mindset. In the main, news from the Dubai property market has been remarkably downbeat all through 2015. You can see how 2016 sentiment is faring if you visit this post.
You can read the full report on the Dubai property market in The National here.