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30 November 2023

UAE may bail out real estate sector: report

Property prices in Dubai have fallen dramatically as developers halt or scale back projects and cut jobs. (CRAIG SCARR) 

By Reuters
The UAE could be preparing to bail out real estate companies in the country and might restrict new supply amid a downturn in property prices,  EFG-Hermes said.

"It is interesting that the government has yet to announce any bailout plans for the real estate sector, though we are inclined to believe that a federal plan is in the pipeline," the Egyptian investment bank said in a research note released on Monday.

While EFG-Hermes' own real estate index showed advertised prices in Dubai had fallen around 8 per cent in the last few months, anecdotal evidence suggested that transacted prices have fallen by double figures in areas such as Dubai Marina, Downtown Burj Dubai and Palm Jumeirah, the note said.

Morgan Stanley said last week property prices had fallen by an average of 25 per cent since their peak in September in Dubai.

Dubai's once-booming property sector has been hard hit over recent months as property prices fall, developers halt or scale back projects and jobs are cut.