By: Enas Bahgat
Mubasher: The real estate stocks listed on both the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) decreased in line with the launch of Cityscape Global 2018, the international property exhibition.
This decline in the real estate sector came unlike the expectations of a possible revive in the market.
The UAE real estate sector has oversupply in residential units when compared to the low demand; this explains the decline in the property segment, Wadah Al Taha, board member of the UAE National Advisory Board, told Mubasher.
According to recent data collected by Mubasher, the real estate market in Dubai declined by 1.28% or 0.28 points during the three-day Cityscape Global 2018.
DFM includes seven real estate companies, namely Emaar Properties, Emaar Malls, Damac Properties, DSI, Arabtec, Deyaar Development, and Union Properties.
During the three-day event, Union Properties went down 0.59%, while Arabtec, Emaar Malls, and Emaar registered a decrease of 4.5%, 3.2%, and 4.6%, respectively.
Meanwhile, Deyaar rose by 1.13%, while DSI jumped 14% in line with the ordinary general meeting’s (OGM) decision to continue its company’s business.
As for the ADX, the stock market includes six real estate firms, namely Al Qudra Holding, Sharjah Group, Aldar Properties, RAK Properties, Eshraq, and Manazel Real Estate.
During Cityscape Global from Tuesday to Thursday, 2 to 4 October, the stocks of Manazel, Eshraq, and Aldar posted a drop of 2.22%, 3.4%, and 4.44%, respectively.
Al Taha said that the positive side in Cityscape Global 2018 is offering residential units at reasonable prices; however, the real estate developers in the UAE have incentives to provide good offers in terms of prices, services, and feasible installments.
He added that despite the incentives, the real estate market in the UAE will need time to regain its balance to witness positive sell/buy transactions; this time could last for a year or more.