With oil prices falling by 54 per cent during the past 12 months, real estate markets in the UAE have begun to respond to the consequences of this decline.
The consequences of plunging oil prices led to lower levels of real estate deals in Abu Dhabi, Dubai and Sharjah, according to the latest report released by the international real estate consulting firm, Cluttons.
The report, which deals with the real estate market in the UAE for 2015, reveals that the correlation between oil and gas revenues and the rate of government spending will result in a pressure in terms of job opportunities.
Oil prices might also witness a further drop, with Iran getting the green light to begin the export of oil, which will affect the demand for office space and, thus, will have an impact on the demand for residential units’ rates.
This change is expected to impact the three largest emirates in the country. However, the return of the Iranian National Real Estate variable to the equation might be very important, especially for the real estate market.