Tourists are spending less and house prices are falling in Dubai as the emirate adjusts to the effects of a low oil price.
Residential property prices fell 0.3% in February, according to the latest data from REIDIN, a data source.
Meanwhile, Dubai’s average daily rate, a measure of income from room rentals in the hospitality sector, fell nearly 5% in January and February compared with the same two-month period in 2016, according to STR, a data provider.
“Dubai’s real estate market continues to face headwinds,” said Martin Cooper, director of real estate advisory for Deloitte. “These headwinds include declining investor confidence and, off the back of a strong dirham, declining purchasing power for many foreign investors and visitors.”
Despite the challenging environment, Deloitte said Dubai’s growth prospects in the medium to long term “remain strong”.
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