Dubai property prices will fall further in 2020; recovery will take a long time – ZAWYA

Dubai property prices will fall further in 2020; recovery will take a long time – ZAWYA

Dubai property prices will fall further in 2020; "recovery will take a long time". With a massive guaranteed oversupply of properties and top developers taking losses in 2019, real estate prices this year could fall another 5 to 10 percent.. "The market is already struggling, and we are expecting a year of very high delivery cycle.. Though Dubai Expo 2020 could trigger positive sentiments in the market, the global event may not significantly help the sector's recovery.. "What we expect of Dubai Expo 2020 is more opening up of the market, which hopefully induces more people to come to Dubai or easing up of visa regulations and so on.. A delay in the recovery of real estate prices could take a hit on the banks' asset quality as well. ". Overall, we expect banks' cost of risk to increase slightly in 2020 to about 120 bps, compared with 110 bps in 2019.. This begs the question of whether the higher committee of real estate can control Dubai's housing supply..