Complex Made Simple

Dubai house price declines by 14.5% annually in May 2019. Time to buy?

If you're in the market to buy a house in Dubai, prices are almost 15% lower than last year in May

House price declined 1.5% month-on-month Average house price now AED 2.5 million ($681k) Apartment prices remain stable month-on-month

By: Property Monitor, a leading real estate intelligence platform 

Real estate data platform Property Monitor has released its Dubai House Price Index for May 2019. The index has been tracking the prices of a selection of properties since September 2015.

The Dubai House Price Index revealed that prices declined by 14.5% annually in May 2019, and by 1.5% month-on-month. The average house price in May was AED 2.5 million, with apartment prices remaining stable month-on-month at AED 1.7 million, while the average villa price decreased to AED 4.4 million.

Read more: What will the impact on the Dubai property market be post Expo 2020?

In May 2019, the annual house price decline was more pronounced in communities such as Discovery Gardens, Dubai Silicon Oasis and IMPZ, where average prices declined by more than 16%.

Related: Property prices in Dubai continue to plummet, dropping 13.2% over the past year

Transfers for off-plan apartments were higher than secondary market transfers, continuing the trend seen for over 12 months. The total volume of residential transactions between January and May 2019 was 4% lower than the same period in 2018, whilst the volume of apartment transfers decreased by 14% over the same tenure.

The Dubai House Price Index tracks residential sales prices for the same selection of properties from September 2015. As of May 2019, apartment and villa/townhouse prices have declined by 20% and 21.5% respectively, compared to average prices of AED 2.1 million and AED 5.6 million in September 2015.

Related: Expert: Dubai property prices will not bottom in 2019 or 2020

The Dubai House Price Index is produced by Property Monitor and was developed in response to a need for greater market transparency.

Read the full report here.