Dubai developers ride out property slowdown
Five months into the US-Iran war, activity has slowed, but prices have remained more stable.
Dubai’s property developers are weathering a slowdown in the real estate market, according to recent data. Emaar, a prominent developer in Dubai, reported a 21% increase in revenue for the first half of the year, despite a 42% decline in new property sales. The decrease in sales can be attributed to fewer launches compared to the previous year.
The wider market also reflects a similar trend, with a 33% drop in property sales during the second quarter, according to land registry figures. Prices in Dubai, which had risen by nearly 70% over the past five years, have remained relatively stagnant, with sellers hesitant to cut prices.
Dubai's real estate market has faced challenges before, with prices falling sharply after the 2008 financial crisis and again between 2014 and 2020. Currently, despite the ongoing US-Iran war, property activity has slowed down, but prices have remained relatively stable. However, the pressure on real estate developers extends beyond convincing potential buyers.
Arada, a developer co-founded by the son of Saudi billionaire Prince Alwaleed bin Talal, reported a 29% decrease in earnings due to wartime delays in the delivery of building materials.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
