International Finance
Real Estate

Dubai’s real estate dipped 10% last year; downturn to continue until 2020

eal estate sector, Dubai real estate, Chinese investors, Shanghai, Dubai Land Department, emirates, mortgage payments
Dubai Land Department said the value of real estate transactions in the first half of 2018 was $30.2bn—reflecting a decline of 16% in deals and 22% in overall number

The Dubai Land Department hosted a real estate exhibition in Shanghai as part of showcasing the sector on a global platform. According to Arab News reports, the real estate sector in the emirates is struggling due to rising interest rates, which makes mortgage payments expensive.

Majida Ali Rashid, assistant director-general at the Dubai Land Department, said: “Our real estate market is receiving heightened interest from Chinese investors, with Dubai becoming a favorite property destination.” There will be more shows planned end of this year and the next in Mumbai, Moscow and London.

Chinese have shown significant interest in Dubai real estate despite warnings about the country’s booming domestic property market in some cities. Bloomberg data reports that prices of new-homes in China has increased quickly in July, climbing 1.2% from the previous month.

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