Supply and demand: why Dubai real estate stocks are struggling

Supply and demand: why Dubai real estate stocks are struggling

Dubai real estate stocks were once the stars for investors betting on the city's booming economy. But their fall from grace has been spectacular and seems set to continue, given an abundance of unsold homes and scant prospects for a recovery in the oil-rich region.

Shares in Emaar Properties, an industry bellwether and the developer of Burj Khalifa, the world's tallest tower, have dropped almost 80 percent from their 2014 peak, when average real estate prices in the emirate were about 30 percent higher.

New UBS research shows Dubai real estate market is fairly valued compared to global peers after years of price declines

Competitor Damac Properties Dubai has posted a similar slump since a 2017 high. Smaller player Union Properties, which is in talks to restructure debt, trades at a 90 percent