Upcoming supply is likely to put pressure on rentals over the medium term in Dubai despite a stronger economic growth this year in the UAE will support demand, HC Brokerage said.
“The restructuring of Nakheel, despite the re-initiation of some projects, is bound to lead to further project delays and cancellations, which supports sector dynamics. We estimate that Nakheel controls 50 per cent of expected supply.Also there appears to be a further slowdown in construction activity, more recently due to reported restrictions on the development of raw land. Given the tight liquidity, developers continue to consolidate their projects,” the Egypt-based brokerage firm said in a report.
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