The Dubai House Price Index from Property Monitor, which tracks the prices of a selection of apartment and villa/townhouse properties since 2015, has noted an overall decline of 13.2% in average price annually this April, compared to a 9.2% annual decline recorded in January 2019.
According to the House Price Index, the average villa/townhouse price decreased to AED 4.5 million ($1.2 million), and the average apartment price remained stable at AED 1.7 million ($463,000) in April 2019 for the same selection of properties tracked since September 2015. House prices in the three months leading up to April were 4.9% lower, compared to the previous quarter.
Prices declined by 1.5% month-on-month, 0.2% less than the monthly change recorded in January 2019.
In April 2019, the annual decline in house prices was more pronounced in communities such as Emirates Living, Jumeirah Lakes Towers, Dubai Silicon Oasis and IMPZ, where house prices declined by more than 14% on average.
Off-plan apartment transfers were higher than those in the secondary market, as has been the case over the past 12 months. However, the total volume of residential transactions between January to April 2019 was 1% lower than the same period in 2018. Meanwhile, the volume of apartment transfers over Q1 2019 decreased by approximately nearly 15% compared to the same period in the past year.
Nazish Khan, Chief Operating Officer of Fidu Properties, said: “It is a buyer’s market out there in Dubai – something which is a far cry from the past. The fact is more and more tenants are taking advantage of the current market situation to relocate from an apartment to a larger apartment, or newer communities with better amenities.”
He added: “Similarly, the current market condition in Dubai is offering an opportunity to every tenant to consider buying instead of renting. Developers are recognising this trend to entice tenants into investing in the properties and in turn offering them payment plans that are convenient and hassle-free.”