Dubai Real Estate: Residential Property Prices Drop 1.1% in Q-2

Dubai Real Estate: Residential Property Prices Drop 1.1% in Q-2

Dubai Real Estate: Residential Property Prices Drop 1.1% in Q-2

ValuStrat said there were signs of an early recovery in some areas 

Residential property prices in the Dubai real estate market showed a 1.1% annual decline in Q-2 of Y 2016, according to ValuStrat’s Price Index.

The firm said its data indicated an early recovery was materializing in some areas, with a possible bottoming-out of property values during the course of the year.

The index stood at 98.0 points in April and May and dipped 0.1% in June to 97.9 points.

More broadly the firm said prices had been relatively stable over the last 12 months and sentiment was “cautiously optimistic” towards a recovery commencing in 2-H of Y 2016, despite warnings from other companies earlier in the year.

“For the Q-2 of Y 2016, Dubai Land Department transaction volumes for the VPI coverage areas witnessed Quarterly increases of 14% for apartments and 7% for villas,” noted ValuStrat research manager Haider Tuaima.

The company said residential investments yields were up during the Quarter, with rents up 1.3% compared to Q-4 of Y 2015 and 2.8% compared to Q-1 of Y 2016.

Around 16,326 apartment and villa units are expected to be completed this year, of which ValuStrat said just over 50% will be delivered.

The firm also noted a further 2,500 units launched during Q-2, adding to the Y 2020 residential pipeline.

By Robert Anderson

Paul Ebeling, Editor

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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