The UAE’s real estate market is expected to witness a slowdown in price increases, dropping by nearly 10% by the end of 2024, according to S&P Global Ratings.
Tatjana Lescova, Associate Director at S&P Global Ratings said, “If you look at the real estate sector today, the first three months of the year [2024] saw double digit growth compared to last year and the prices are continuing to rise. So, we generally think prices will increase on a full-year basis at [the rate of] 5% to 7% this year,” she said. “But this also points towards a deceleration in growth because prices in 2023 increased by almost 15%.”
The long-term impact would greatly depend on the reputation of the development. But the impact of the floods can be felt on prices potentially. It is expected that the demand will slow down in 2024
Lescova added, “leading towards an eventual turn in the cycle. Businesses coming here will sustain the current trend for some time before the bulk of the new supply, coming in in 2025 and 2026, could result in a shift,” she continued. “So, if you ask whether a slowdown in the real estate sector will come in Q4 2024, it’s hard to point that out, but we think generally it will slow down coming over the next 12 months.”
