Values of residentials in the Dubai property market have been witnessing a slight slide recently, but experts say this decline will slow and eventually stabilise towards the end of 2017.
International real estate consultancy Cluttons has released its Dubai Winter 2016/2017 Property Market Outlook, assessing current market status and providing knowledgeable forecasts into the coming season.
“If supply continues to increase in the next 12 to 18 months, as the global economy remains unstable, it is likely to cause the current stability and projected bottoming out of the real estate market to unravel, with further price falls likely to follow suit. Demand and supply are almost in-sync currently, but this delicate balance can quickly be upset by a supply surge,” Murray Strang, head of Cluttons Dubai, said.
According to Cluttons’ expectations, infrastructure projects linked to the Expo 2020 and other mega projects will be the key triggers to slowing the drop in value of property for the coming few years.
Market in numbers
7.4%: Drop in average residential values during the past 12 months.
2.6%: Slip in value of property during the third quarter of the year.
21%: Drop in quarterly transaction volumes for Q3.
22%: Fall in apartment deal volumes, which are down 26 per cent when compared to Q3 2015.
28.1%: Drop in average price of a transacted villa since the start of the year, to stand AED3.9 million.
10%: Fall in villa prices over the past three years.
11.9%: Drop in villas value at Hattan Villas at The Lakes, considered a high-end location, over the past 12 months.
11.1%: Drop in villas value at Palm Jumeirah, which is also considered a high-end location, over the past 12 months.
4.4%: Fall in average rents across the city’s freehold areas in Q2, the strongest in five years. This leaves average rents eight per cent down, compared to this time last year.