Thousands of homes under construction in Dubai are being put on hold as property prices in the emirate continue to fall and rents start to sink.
Between 4,000 and 5,000 homes that were initially scheduled for handover in the second half of this year have been delayed for at least another year to 18 months as the Dubai property market continues to soften, said JLL, a property broker.
JLL said 1,700 homes had been completed in the third quarter, increasing the total residential supply to 452,000 units.
Another 45,000 homes are expected to be delivered over the next two years.
JLL said average apartment prices in the city fell 11 per cent over the past year because of the strong dirham, higher sales transaction fees and mortgage caps.
Apartment prices slid an average of 3 per cent between July and September from the previous three months.
Sales prices for villas fell 7 per cent year-on-year and 3 per cent quarter-on-quarter.
Housing rents in the emirate, which had proved more resilient than sales prices, have also started to decline.
JLL said that after about a year of remaining steady, average apartment rents in the city dropped 1 per cent in the third quarter and villa rents fell 2 per cent.
The broker predicted that average housing rents in the city would continue to fall by as much as 10 per cent over the coming 12 months.
“We expected rents to fall sooner than they did, and actually we are surprised that they held up for so long,” said Craig Plumb, the head of research at JLL’s Dubai office. “We don’t believe that there is one trigger for the fall in rents at the moment, but we expect it has a lot to do with a slowdown in the overall economy, meaning that employment growth has not been as strong as it was.
“With oil prices staying lower for longer than was at first anticipated, the Government has been cutting back spending, which has led companies to be a bit more cautious with their hiring.”
At the start of the year JLL predicted that average house prices would fall 10 per cent this year as the market experienced a slowdown following the dramatic boom, bust and boom of the previous decade.
JLL last week revised its forecast for the year, predicting that average house prices would fall 15 per cent throughout this year.
Last month, CBRE predicted that property price drops would continue next year after average Dubai prices fell 6 per cent in the year to the end of August, while Knight Frank reported that the Dubai residential property market was one of the worst performing in the world in the second quarter of the year, with greater price slumps than Greece, China and Ukraine.
lbarnard@thenational.ae
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UAE |
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Japan |
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Norway |
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Canada |
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Singapore |
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South Korea |
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Engine: 3.8-litre twin-turbo flat-six
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Retail gloom
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How to come clean about financial infidelity
- Be honest and transparent: It is always better to own up than be found out. Tell your partner everything they want to know. Show remorse. Inform them of the extent of the situation so they know what they are dealing with.
- Work on yourself: Be honest with yourself and your partner and figure out why you did it. Don’t be ashamed to ask for professional help.
- Give it time: Like any breach of trust, it requires time to rebuild. So be consistent, communicate often and be patient with your partner and yourself.
- Discuss your financial situation regularly: Ensure your spouse is involved in financial matters and decisions. Your ability to consistently follow through with what you say you are going to do when it comes to money can make all the difference in your partner’s willingness to trust you again.
- Work on a plan to resolve the problem together: If there is a lot of debt, for example, create a budget and financial plan together and ensure your partner is fully informed, involved and supported.
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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HEADLINE HERE
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- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
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- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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If you go:
Getting there:
Flying to Guyana requires first reaching New York with either Emirates or Etihad, then connecting with JetBlue or Caribbean Air at JFK airport. Prices start from around Dh7,000.
Getting around:
Wildlife Worldwide offers a range of Guyana itineraries, such as its small group tour, the 15-day ‘Ultimate Guyana Nature Experience’ which features Georgetown, the Iwokrama Rainforest (one of the world’s four remaining pristine tropical rainforests left in the world), the Amerindian village of Surama and the Rupununi Savannah, known for its giant anteaters and river otters; wildlifeworldwide.com
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
