Latest news with #residentialprices
Zawya
29-05-2025
- Business
- Zawya
Fitch: Dubai property prices to drop but issuers have rating buffers
Dubai residential real estate prices will face a moderate correction in 2H25-2026 after peaking this year, Fitch Ratings says in new report. But we expect prices will not fall more than 15% with banks and homebuilders in the UAE able to absorb the lower prices, which will protect them from rating downgrades. Prices of residential units increased by about 60% in 2022-1Q25 with demand underpinned by immigration in the post-pandemic years coupled with the improved attractiveness of the Dubai property market for investors in healthy economic environment. This is against the backdrop of a record number of new property projects in 2023-2024, which are expected to release about 250,000 units. The spike in deliveries is expected in 2026, when about 120,000 units are planned for handover, compared to only 30,000 in 2024 and 90,000 in 2025. The handover of new units will lead to a record increase in supply. We estimate an average 16% increase in supply in 2025-2027, exceeding forecast population growth of around 5%. Meanwhile, the average residential rental yield declined by 30bp in 2H24-1Q25 (albeit to a still heathy level of 7.4%) and we expect higher supply will put a further pressure on rental yields. Delays in deliveries of some projects are possible, given low completion rates to date and the previous record of smoothening supply. Furthermore, assets in prime locations will remain more resilient to a potential correction, given a different typical investor profile with generally longer holding periods and higher tolerance for price swings. Rated UAE homebuilders and banks have reasonable cushions to tolerate the forecast level of falling prices given the improved leverage at homebuilders. This in turn resulted in lower levels of real estate financing at banks, which is also coupled with improved capital cushions coming from strong profitability. The report, 'Dubai Real Estate Market Risks' is available here. Media contact: Tahmina Pinnington-Mannan Director, Corporate Communications Fitch Group, 30 North Colonnade, London E14 5GN tahmina.p-mannan@
Malay Mail
13-05-2025
- Business
- Malay Mail
Knight Frank: KL prime home prices remain flat in Q1 2025, ranking 35th globally
KUALA LUMPUR, May 13 — Prime residential prices here edged up by 0.2 per cent year-on-year in Q1 2025, according to Knight Frank's latest global index, reflecting a market that is cautious but not contracting. The city ranked 35th out of 45 locations in the Prime Global Cities Index, with a flat quarterly performance that signals a pause rather than progress. The global average growth of 2.8 per cent was driven largely by Asia-Pacific and Middle Eastern cities, even as the overall recovery remained modest and uneven. Seoul topped the list with an 18.4 per cent increase, followed by Dubai (16.4 per cent), Tokyo (15.5 per cent), Bengaluru (8.3 per cent), and Mumbai (7.6 per cent), while Singapore placed 20th with a 2.5 per cent annual gain. Knight Frank said Kuala Lumpur's stability, while positive, masks a lack of strong growth drivers in the current environment. Investor sentiment remains tentative, particularly among international buyers who are awaiting more clarity on policy direction and interest rate movements. 'The absence of decline, despite prevailing headwinds, suggests a degree of resilience in the market,' Keith Ooi, group managing director of Knight Frank Malaysia, said in a statement. He added that the pace of recovery will likely stay measured in the short term, shaped by affordability pressures and economic signals. Meanwhile, developers are focusing on niche projects that offer integrated living and strong infrastructure to meet evolving buyer preferences. This trend is pushing developers towards more disciplined pricing and delivery, which supports sustainability but may limit near-term growth. Enoch Khoo of Knight Frank Property Hub said buyers remain highly selective, prioritising location, quality, and lifestyle alignment. Knight Frank said global housing markets are still influenced by macroeconomic uncertainty, with lower borrowing costs needed to trigger the next growth phase.
