DUBAI (Reuters) – Dubai’s real estate downturn is forcing construction and engineering firms to cut jobs and halt expansion plans, in turn raising fresh risks for the wider economy. Known for its glittering skyscrapers and luxury villas, the Dubai property market is oversupplied, especially in the residential sector where prices have fallen steadily from a peak in mid-2014. ECONOMIC PLANKReal estate and construction together accounted for 13.3 percent of Dubai’s gross domestic product in 2017, according to the Dubai Statistics Center. After falling 5-10 percent in 2017, real estate prices could decline by 10-15 percent over the next two years, S&P Global Ratings said earlier this year. Al Qabdah, which also has projects in the neighboring emirate of Sharjah, is “luckier than others in the market”, El Achkar added.

Source: Egypt Independent December 19, 2018 13:07 UTC