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Hi Dubai
28-03-2025
- Business
- Hi Dubai
UAE: Will Petrol Prices Drop in April as Global Oil Markets Shift?
Petrol prices in the UAE are expected to decline in April as global crude prices remained subdued in March. Brent crude averaged $70.93 per barrel in March, down from $75 in February, influencing domestic fuel price adjustments. The UAE government, which announces revised fuel prices at the end of each month, is anticipated to reduce rates accordingly. In March, petrol prices stood at Dh2.73 per litre for Super 98, Dh2.61 for Special 95, and Dh2.54 for E-Plus 91. With oil prices stabilizing at lower levels, consumers may see relief at the pump in the coming month. Global Factors Influencing Prices Oil markets have been navigating volatility driven by geopolitical developments and economic uncertainty. Joseph Dahrieh, managing principal at Tickmill, highlighted the impact of recent US tariffs on Venezuelan oil buyers and ongoing trade tensions, which have clouded demand outlooks. Meanwhile, OPEC+ is expected to increase crude production, which could further weigh on prices. However, the group's efforts to manage overproduction may prevent a steep decline. Geopolitical Uncertainty Adds to Market Volatility Escalating tensions in the Middle East have provided temporary support for oil prices. US military strikes against Houthi rebels in the Red Sea, Israeli operations in Gaza, and the ongoing Russia-Ukraine conflict have heightened market concerns. According to George Pavel, general manager at Middle East, potential peace talks in Ukraine could offset some of these risks. Despite recent rebounds, the market remains unpredictable. With new US tariffs on Venezuelan oil set to take effect on April 2, global crude prices could see further fluctuations. Month Super 98 Special 95 E-Plus 91 Jan-24 2.82 2.71 2.64 February 2.88 2.76 2.69 March 3.03 2.92 2.85 April 3.15 3.03 2.96 May 3.34 3.22 3.15 June 3.14 3.02 2.95 July 2.99 2.88 2.8 August 3.05 2.93 2.86 September 2.9 2.78 2.71 October 2.66 2.54 2.47 November 2.74 2.63 2.55 December 2.61 2.5 2.43 Jan-25 2.61 2.5 2.43 February 2.74 2.63 2.55 March 2.73 2.61 2.54 News Source: Khaleej Times
Khaleej Times
26-02-2025
- Business
- Khaleej Times
Dubai real estate market posts first monthly dip in two years
Dubai's red-hot real estate market has recorded its first monthly price decline in over two years, signalling a long-anticipated shift toward equilibrium. According to Property Monitor, a leading real estate intelligence firm, average prices fell by 0.57 per cent in January 2025 to Dh1,484 per square foot — the first drop since summer 2022. This cooling follows four consecutive years of unprecedented growth, during which prices surged by over 30 per cent in 2024 alone, smashing records for transactions, launches, and mortgage activity. January 2025 marked the strongest month on record for sales volume, with 14,413 transactions. However, this figure represented a 4.6 per cent month-on-month decline from December 2024, hinting at a moderation in buyer momentum. Notably, the off-plan sector continued to dominate, with 53 new launches adding 12,400 units to the pipeline. With 7,555 transactions, the off-plan market accounted for 52 per cent of sales during January, down 17.7 per cent on December 2024. Title deed sales saw a marked month-on-month increase, rising by 15.7 per cent and accounting for 47.6 per cent of sales. Developers such as Emaar (16.5 per cent market share), Damac (15.8 per cent), and Danube (5.3 per cent) led activity, though off-plan sales dipped 17.7 per cent compared to December. Meanwhile, ready property transactions rose 15.7 per cent, reflecting renewed investor interest in completed assets. The slight price correction underscores growing affordability constraints after years of steep appreciation. Median prices in January stood at Dh1.35 million for apartments, Dh2.61 million for townhouses, and Dh6.92 million for villas. While luxury segments saw eye-popping deals—including a Dh425 million villa in Emirates Hills—entry-level buyers gravitated toward affordable options, such as a Dh175,000 studio in Dubai Production City. Zhann Jochinke, COO of Property Monitor, noted, 'Dubai's market is maturing. After a phase of explosive growth, stakeholders are recalibrating to balance supply with sustainable demand.' Mortgage activity echoed this sentiment: despite tighter Central Bank regulations, loans rose 6.8 per cent month-on-month to 4,134, with stable loan-to-value (LTV) ratios indicating sustained lender confidence. 'While the total number of transactions remains strong, affordability constraints and market maturity are beginning to shape the landscape. With sales volumes and mortgage transactions moderating, Dubai's property sector could be transitioning from a continued phase of rapid growth to a more sustainable trajectory. A careful balance of supply and demand will determine the future of the market in 2025 and beyond,' said Jochinke. January's dip comes on the heels of a historic 2024, when Dubai's property sector defied global headwinds to achieve record-breaking sales (over 150,000 transactions) and price peaks. Analysts argue that January's moderation reflects a natural market cycle rather than a downturn, with developers and regulators now prioritizing long-term stability over unchecked expansion. With 12,400 new units launched in January alone, developers must align future projects with evolving buyer preferences, particularly in mid-market and sustainable housing, market analysts said. Stable LTV ratios and rising loan volumes suggest financing remains accessible, though rate fluctuations could impact sentiment. The polarization between ultra-luxury and budget-friendly segments will likely persist, requiring tailored regulatory and investment strategies. As Dubai's market transitions from 'boom' to 'balance,' 2025 is poised to test its maturity—and its ability to sustain growth without overheating, market pundits said. 'For investors and end-users alike, the era of guaranteed double-digit returns may be fading, but opportunities endure in a market now defined by nuance, diversification, and strategic foresight.'
Khaleej Times
10-02-2025
- Business
- Khaleej Times
Is further petrol price hike in the offing?
The recent increase in UAE fuel prices, effective February 1, after two months of stable rates raises questions about the possibility of further hikes in the months ahead, particularly as global oil market dynamics shift against the backdrop of ongoing trade tensions. Analysts indicate that additional price increases cannot be ruled out, as the global oil market remains volatile, influenced by geopolitical tensions and economic changes. Since the UAE deregulated fuel prices in 2015, adjustments have been made monthly to align with global market fluctuations. The latest price hike has reignited discussions about the sustainability of low fuel prices in the region, especially in light of historical pricing trends. For February, the new fuel prices are as follows: Super 98 petrol is now priced at Dh2.74 per litre, up from Dh2.61 in January. These remains significantly lower than the peak price of Dh4.63 per litre recorded in July 2022, which was driven by rising global oil demand and the economic recovery following the Covid-19 pandemic. As the global economy navigates complex challenges, the future of petrol costs is uncertain. Analysts suggest that current oil market trends indicate the potential for further price shifts. They warn that Brent crude prices could again breach the $80 per barrel mark if geopolitical tensions escalate, particularly with US sanctions on Iran and disruptions in North American supply chains. According to a recent Wall Street Journal survey, Brent crude is expected to average $75.33 per barrel in the first quarter of 2025, with projections slightly decreasing in subsequent quarters. This volatility is shaped by various factors, including geopolitical events and anticipated impacts of US trade policies. President Trump's renewed focus on Iran, through a "maximum pressure" campaign, seeks to eliminate Iranian oil exports, which could remove up to 1.3 million barrels per day from the global market. Historical precedents suggest that such actions can lead to significant price increases, as evidenced in 2018 when oil prices surged past $80 per barrel due to intensified sanctions. As the UAE adjusts its fuel prices, the implications for motorists are significant. While short-term increases may be likely due to geopolitical tensions, the long-term outlook could stabilise if Opec+ decides to increase production or if economic concerns dampen demand. Goldman Sachs and other major financial institutions have noted that while immediate risks may push prices higher, the longer-term forecast remains cautious due to high spare capacity and potential demand destruction from tariffs. UAE motorists, who have become accustomed to relatively stable and low fuel prices, may need to prepare for fluctuations in the coming months. The interplay between domestic pricing policies and international market dynamics will be crucial in determining how these changes impact consumers at the pump. As the UAE adjusts its fuel prices for February, the outlook for motorists is mixed. While current prices reflect global uncertainties and geopolitical tensions, there is a potential for stabilization in the medium to long term. Motorists in the UAE should remain informed about local pricing adjustments and global oil market trends as they navigate the evolving landscape of fuel costs.
