Dubai residential prices could fall by up to 10% in 2019: Savills

Visitors look at a scale model of one of the planned development projects in Dubai during the emirate’s property show Cityscape on October 2, 2018. (AFP)
Updated 07 January 2019
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Dubai residential prices could fall by up to 10% in 2019: Savills

  • Dubai’s over-supplied property market has steadily fallen since a mid-2014 peak
  • The United Arab Emirates, which Dubai is part of, is experiencing its latest real estate slump along with other parts of the Middle East

DUBAI: Residential real estate prices in Dubai could fall by 5 to 10 percent in 2019, weakened by new supply, a strong dollar and lower oil prices, the Middle East chief executive of Savills said on Monday.
Dubai’s oversupplied property market has steadily fallen since a mid-2014 peak, hurting earnings of the emirate’s top developers and forcing construction and engineering firms to cut jobs and halt expansion plans.
While the latest fall in house prices has not come close to the more than 50 percent plunge seen in 2009-2010, which pushed Dubai itself close to a debt default, residential prices fell by 6 to 10 percent in 2018, Savills’ Steve Morgan said.
And this drop could be repeated in 2019, he added.
The United Arab Emirates, which Dubai is part of, is experiencing its latest real estate slump along with other parts of the Middle East, largely due to oversupply, although a strong dollar and lower oil prices are also a factor.
The UAE dirham is pegged to the dollar, making the country more expensive for those holding other currencies, while oil is a major driver of regional wealth.
Morgan said he was “bullish” that Dubai was heading toward the bottom of its property market downturn, although cautioned he had thought the market touched bottom a year earlier.
S&P Global Ratings’ analysts said last year the market could decline by 10 to 15 percent in 2018 and 2019 before stabilizing in 2020 at the earliest.


Apple’s Cook to China: keep opening for sake of global economy

Updated 23 March 2019
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Apple’s Cook to China: keep opening for sake of global economy

  • Cook’s comments come as Apple weathers sinking sales in China
  • Despite official pledges and repeated assurances that China would continue to open its markets

BEIJING: Apple chief executive Tim Cook nudged China on Saturday to open up and said the future would depend on global collaboration, as the United States and China remained locked in a bitter trade dispute.
“We encourage China to continue to open up, we see that as essential, not only for China to reach its full potential, but for the global economy to thrive,” Cook said at a China Development Forum in Beijing.
Despite official pledges and repeated assurances that China would continue to open its markets, some analysts worry that its reform project has slowed or even stalled under President Xi Jinping, who has sought greater control over the economy and a bigger role for state-owned firms at the expense of the private sector.
Cook’s comments come as Apple weathers sinking sales in China because of a contracting smartphone market, increasing pressure from Chinese rivals, and slowing upgrade cycles. The company reported a revenue drop of 26 percent in the greater China region during the quarter ending in December.
Before those results came out, in a January letter to investors, Cook blamed the company’s poor China performance on trade tension between the United States and China, suggesting that pressure on the economy was hurting sales in China.