Dubai property: Tenants rejoice as the decline continues!
If you’re busy house hunting in Dubai, you’ll be glad to know the property market is expected to drop in value by 10 to 20 percent over the remainder of 2015 and early 2016. Finally! Some positive news for tenants!
According to ratings agency Standard & Poor’s (S&P), the decline in values is finally happening “after three years of sharp price appreciation” and is largely due to the increase in supply. However, the major players (such as Aldar Properties, DIFC Investments, Damac Properties and Emaar Properties) are in a better position to cope with the decline now than during the infamous crash of 2009. Since then these companies have managed to diversify their revenue streams and improve their balance sheets and cash generation, according to The National newspaper. “We believe real estate companies in the UAE are better armed to deal with the current slowdown and should be able to absorb it with limited ratings impact,” said credit analyst Franck Delage.
Good for them, but even better for us tenants!