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

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.


China's aviation regulator raised concerns with Boeing on 737 MAX design changes

Updated 12 December 2019

China's aviation regulator raised concerns with Boeing on 737 MAX design changes

  • China is reviewing the airworthiness of the plane
  • China was first country to ground plane in March

BEIJING: China’s aviation regulator raised “important concerns” with Boeing Co. on the reliability and security of design changes to the grounded 737 MAX, it said on Thursday, but declined to comment on when the plane might fly again in China.
China is reviewing the airworthiness of the plane based on proposed changes to software and flight control systems according to a bilateral agreement with the United States, Civil Aviation Administration of China (CAAC) spokesman Liu Luxu told reporters at a monthly briefing.
He reiterated that for the plane to resume flights in China, it needed to be re-certified, pilots needed comprehensive and effective training to restore confidence in the model and the causes of two crashes that killed 346 people needed to be investigated with effective measures put in place to prevent another one.
China was the first country to ground the 737 MAX after the second crash in Ethiopia in March and had set up a task force to review design changes to the aircraft that Boeing had submitted.
The US Federal Aviation Administration (FAA) will not allow the 737 MAX to resume flying before the end of 2019, its chief, Steve Dickson, said on Wednesday.
Once the FAA approves the reintroduction into service, the 737 MAX can operate in the United States, but individual regulators could keep the planes grounded in other countries until they complete their own reviews.
“Due to the trade war, the jury is still out on when China would reintroduce the aircraft,” said Rob Morris, Global Head of Consultancy at Ascend by Cirium.
Chinese airlines had 97 737 MAX jets in operation before the global grounding, the most of any country, according to Cirium Fleets Analyzer.