Dubai property glut on show in worst week for stocks since 2016

Graph

Dubai stocks are giving investors an update on the woes confronting the local real-estate industry. The DFM Real Estate & Construction Index has fallen about 7% in the past five days, the biggest weekly drop since May 2016. All but one of its members are down by at least 2% this week, compared with an overall 0.2% retreat in an emerging-market gauge for the sector. Oversupply is casting a cloud over Dubai developers and real-estate companies at the same time that the region confronts a slump in oil prices.Emaar Properties PJSC, the emirate’s biggest developer and the stock with the third-largest weighting in the local benchmark index, last month put on hold plans to sell new debt as interest rates increased.  Shares of subsidiary Emaar Development PJSC had the worst week since its 2017 market debut.

Sources and photo-credits: Bloomberg, Gulf Times