Dubai property prices have the largest declined for the past years. Real Estate consultancy Knight Frank says that this is the biggest price drop in the world.
Daily Star says that the price drop has gone down to 12.2 %. It has been straight 12 months that the housing prices have been dropping, but in the month of June, the figure shows the biggest drop in "56 mainstream residential markets and larger than the 12 percent fall in real estate prices in Ukraine, which has been hit by almost two years of protests, a separatist insurgency, and political upheaval." Knight Frank says in his report on Tuesday that housing prices in Dubai fell 2.8% in Q2. He also adds that the best performing residential market is in Hongkong in which the prices went up by 20.7%
It has also been noted that the property market in Dubai for the last ten years has gone from flourishing to belly-up and then the cycle repeats. "Price gains in the two years through 2014 recouped much of the losses incurred in a 2008 collapse that pushed the city to the brink of bankruptcy." This year, the prices have been starting to go down again in the middle of oil crisis and weaker currencies in Russia and Europe. At present, "Regulators also introduced caps on the size of mortgages and doubled transaction fees to deter speculation."
In a separate report of Arabian Business, it says that annual 2015 UAE Property Report reveals the "direct correlation between hydrocarbon revenues and state spending will also put pressure on the rate of job creation in the UAE." In a separate report of Cluttons Middle East, it says that property market in Abu Dhabi, Dubai and Sharjah would also suffer as oil prices have also been declining. This decline of oil prices will still continue especially Iran is about to begin its oil export.
Dubai property prices will continue to go down the slope as oil prices are continually declining. Two real estate consultancy firms have already confirmed that the property market is affected by the oil crisis in UAE.
