(Bloomberg) — Dubai real estate stocks were once the stars for investors betting on the city’s booming economy. But their fall from grace has been spectacular and seems set to continue, given an abundance of unsold homes and scant prospects for a recovery in the oil-rich region.
Shares in Emaar Properties PJSC, an industry bellwether and the developer of Burj Khalifa, the world’s tallest tower, have dropped almost 80% from their 2014 peak, when average real estate prices in the emirate were about 30% higher. Competitor Damac Properties Dubai Co. has posted a similar slump since a 2017 high. Smaller player Union Properties PJSC, which is in talks to restructure debt, trades at a 90% discount from its 2005 levels.
Not even a majority of buy recommendations from analysts, thanks to cheap valuations and expectations of government support,