Arqaam Capital released a new report on the the United Arab Emirates real estate market, indicating that property prices and rents may drop a further 20 percent until the end of this year and further in 2013. Excess in supply remains the main reason for the continuous negative trend.
“There is a further leg down to the U.A.E. property market before residential prices and rents recover,” wrote analyst Mohammad Kamal. “We see a further 15 percent to 20 percent in downside to prices and rents in financial year 2011 and 2012,” he continued.
According to the Deutsche Bank AG estimates, residential property prices slumped 64 percent since their peaked in 2008. According to Jones Lang LaSalle’s research report from October 16, Abu Dhabi will continue to have excess of most types of properties, leading to a further decline in rental and sale prices.