No Decline in Dubai Property Prices in April
The monthly ValuStrat Price Index did not decline for the 1st time in almost 2 years
Residential real estate prices in Dubai remained stable during the month of April, signalling that the market may be bottoming-out, a new index has finds.
The monthly ValuStrat Price Index did not decline for the 1st time in almost 2 years in April.
“Slight price recoveries in a small number of districts add to possible signs of a bottoming-out in monthly values for apartments and villas,” a statement said.
Compared to a 100 point base in January 2014, the April 2016 index registered 98 index points, with no significant change in values when compared to the previous seven months.
The villa market registered 96.7 points in April, unchanged from March, while the apartment market stood at 98.8 points, up 0.3% since January.
“After a 9-month relatively stable market, more end users are seeking to get on the property ladder, anticipating long term capital appreciation while saving on monthly rental expenditure,” the report said.
In Q-1 of this year, the index was down 3.5% Y-Y in values with transaction volumes also down 6%.
The median residential transaction price declined 10.4% Y-Y in Q-1, ValuStrat said.
However, demand is picking up again in the market, it added.
“Increased buyer interest in competitively priced off plan townhouses and villas, along with flexible payment plans, has been observed,” the report said.
Eight off-plan residential projects were launched in Dubai in Q-1, and will add more than 2,000 units to the pipeline by Y 2021.
Projects include Damac’s Aykon City, Dubai Properties’ Bella Casa – Serena, Azizi’s Royal Bay Palm Jumeirah and Emaar’s Harbour Views and Sidra Villas, among others.
Dubai’s residential property market had been hit by a 10% slump in sales, a recent report by JLL (NYSE:JLL) found.
JLL’s head of research Craig Plumb said: “Various factors are bringing the market towards the bottom of its cycle. On one hand, the strong USD is impacting the USD pegged GCC currencies which is making Dubai real estate more expensive for buyers from non-USD pegged markets.
“On the other hand, the continued period of low Crude Oil prices is tightening regional liquidity which is also affecting the real estate market.”
By Aarti Nagraj
Paul Ebeling, Editor