The current slowdown in the UAE real estate market should be seen as a minor correction as opposed to a major crash, according to a Middle East property expert.
David Dudley, International Director at JLL MENA, will be part of a panel discussing the issue at the upcoming Cityscape Abu Dhabi.
He said that while the impact of reduced oil prices on the economy will lead to a short-term slowdown in demand, this is occurring at a time of minimal supply completions leading to relatively stable market conditions.
“The market experienced a major upswing from 2013 to 2014, led by the residential sales market, with prime residential prices growing at 25% per annum. This pace of growth was unsustainable,” he said.
“The current phase is a slow-down and a relatively minor correction, rather than a major crash – with reduced supply coming through at a time of weak demand, allowing underlying dynamics to catch up with the pace of value growth.”
Cityscape Abu Dhabi will mark its 10th anniversary this year when it returns to the Abu Dhabi National Exhibition Centre from 12-14 April.