dubai dubai real estate prices have rebounded strongly from a record low at the end of 2020 but demand is uneven and oversupply of residential properties will pressure prices in the long run making the recovery fragile sp global ratings saidreal estate investment firm cbre group said last week that average residential property prices in dubai rose 44 in the 12 months to august the highest annual growth since february 2015 but an ongoing fall in apartment rents signalled continued weakness in the longtroubled sectorthe rebound in demand for residential real estate has largely benefited premium developers with a surge in presales and price improvements sp saidit said market data showed that apartments which make up 8590 of properties experienced a price increase of about 6 in the second quarter the rates for villas have also accelerated while rents for apartments are still laggingreuters reported in march that the luxury segment of dubais property market had received a boost since last years sharp downturn but real estates overall recovery is still a long way offeven before the coronavirus pandemic the longterm economic trend in the united arab emirates had been sluggish since the 201415 oil price crash supply has outpaced demand for new houses and apartments for years in a market where most of the population are foreigners many of whom left during the pandemicreal estate prices are at a low point in the cycle sp said expecting a rebound in 20212022 supported by demand driven by improved consumer sentiment increased oil and gas prices high vaccination rates in dubai and the citys hosting of the world expo delayed by a year due to the pandemicin the longer run we believe that the demand for residential properties will depend on the success of the recent government initiatives targeting population increase such as new visas and more liberal social laws sp said