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