The UAE real estate market may see further drop in prices as most properties are still overpriced and the occurrence of real recovery remains difficult to predict, industry analysts told Emirates Business.

"With regard to the UAE real estate market, it is possible that we will see a further drop in prices," said Chris Dommett, Chief Executive Officer of John Charcol Middle East.

He said the industry is currently seeing buyers who are prepared to pay higher than the official valuation for certain select properties, which suggests a possible recovery from the distressed selling of a few months ago.

"However, it is still too early to call this a recovery, and I believe the post-summer and Ramadan period will be important in deciding which way the market will go," Dommett said.
Nabil Maaloul, CEO of Gulf Merchant Bank, said the property sector will still see a more reasonable correction as the real estate market has not yet bottomed out.

"Comparing the correction in the largest cities in Mena to the correction we have seen in Europe or in some large cities such as Paris, London and Berlin, the real estate is still overly priced in the region."

Property prices may drop further as the sector is yet to bottom out