Dubai property prices fall
Property prices in the emirate continue to go down, and rents are also dropping, but not as quickly…
Dubai is expecting to see a further drop in residential property prices this year, following an 11 per cent drop in quarter two this year when compared to quarter two in 2014.
In the first half of 2015, the Dubai apartment market experienced a 2.5 per cent decline, with the villa market dropping by 2.1 per cent.
The information comes from a report published by research intelligence firm ValuStrat, which states: “By tracking the values of a fixed basket of properties in twenty-six locations around Dubai, the ValuStrat Price Index (VPI) has shown a steady decline since the peak during the second quarter of last year. However, the rate of decline is easing and is expected to continue to decelerate over the remainder of the year.”
When compared to the first quarter of this year, Business Bay apartments up for sale saw a price drop of 6 per cent, with International City, Dubai Sports City and Discovery Gardens experiencing a 4 per cent drop.
The for-sale villa market saw an average price drop of 3 per cent in places such as Arabian Ranches, Jumeirah Park and Al Furjan.
Unfortunately for those hunting for somewhere to lease, rental prices didn’t fall as heavily, with the average apartment rent dropping by just 2 per cent when compared to 2014, with villa rent down by just 3 percent.
Most of the falls are due to the increase in supply in the property market, with ValuStrat saying that an anticipated 26,100 apartments and 2,400 villas will come onto the market in 2015. This gives tenants much more choice, resulting in a better bargaining position when it comes to dealing with landlords.
Dubizzle and Asteco have also released reports suggesting that property prices will continue to fall this year.