A major Emirati property developer believes Dubai's property market has bottomed out — but says there remain at least two more tough years ahead before a full rebound.
"2018 has been a difficult year, prices have come down, sales have come down, and I think '19 and '20 are going to be also not easy years," Hussain Sajwani, chairman of Dubai real estate heavyweight DAMAC Properties told CNBC's Hadley Gamble on Wednesday. "I think we are at the bottom, from a price point of view, but it will take at least two years to absorb the supply."
The UAE's commercial hub has suffered a bruising year, with Dubai's stock market the worst-performing in the Middle East and record drops in property sales. Property sector analysts say the city has been overbuilding, and with weak demand for all the newly built homes and apartments, property prices have been tanking. Residential prices in the emirate of 3 million have fallen by some 15 percent since 2014.
A report by real estate platform PropertyFinder published last November predicted a continued slide for the sector in 2019, as supply is expected to double or even triple while demand remains subdued.