Logo
  • Order call
  • Call management

Property type
No. of bedrooms
Area
Show offers

Dubai prices falling, revenues grow

11.10.2015
Dubai prices falling, revenues grow
Dubai rental sector continues to attract attention of real estate market players. And last week analysts presented data, explaining why.

Last week, JLL and Tasweek analytical agencies presented their third quarter Dubai property prices researches. Their common verdict indicates that the average rate of return on investment in Dubai is increasing due to lower prices in the sales segment and prices stabilization in the lease segment.

Apartment sales prices in the year third quarter in Dubai fell by 3% compared with the previous quarter and by 11% year-on-year, while average rental price stayed almost unchanged having declined marginally by 1% both year-on-year and quarter-on-quarter, JLL experts claim in their latest report. And villa and townhouses prices saw a decline of about 3% in a quarter and 7% in year to October, while the average sales sector prices indicator witnessed a decline of about 12.7 per cents year-on-year, according to Tasweek consultancy estimates.

Overall buyers’ activity also saw a decrease in Q3, Tasweek says in its report. The total number of real estate transactions in the third quarter declined by an average of 64% compared to the year’s first quarter. But it is worth mentioning though, that the third quarter includes two hottest summer months in Dubai plus September, and during that time all business activity in Dubai usually faints.

But generally, Tasweek experts have called the situation in the Dubai property market quite stable and agreed with JLL experts in their relatively positive outlook for the future real estate industry development in Dubai. As for the prices, in the third quarter Dubai apartments were put on sale at an average price of USD 3147 per square meter, while villas were marketed at a price of USD 3545 per square meter.

According to Tasweek, 26,100 new apartments and 2,400 villas are planned to handover in 2016 in Dubai, and another 5,000 units will be added to the Dubai real estate market by 2019 in 18 new off-plan real estate projects launched in the second half of 2015.

This situation makes real estate property the most profitable investment now in Dubai, as the increase in demand for rents together with the fall in sale prices have jointly pumped up the average yield returns in Dubai by 9.9% to 7.42 per cents, Knight Frank said.

Thus, Dubai has once again proved its ability to turn even that, what at first appeared the worst tendencies, into its main advantages.

Latest Availability
RENT
125,000 / year
Ref.No: OF1209
Office
1,655 ft2
76 AED/ft2
SALE
6,800,000
Ref.No: AP1113
3BR Apt
3,003 ft2
2,264 AED/ft2
SALE
8,200,000
Ref.No: AP972
3BR Apt
3,750 ft2
2,187 AED/ft2
Latest Blog Articles
Send us an enquiry or request a call back
Your name *
Phone
E-mail *
Your message *
*- indicates required
Request a call back
SOGA1  SOGA2
Call management
SOGA1  SOGA2
Lease process (Rent out)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.
Real estate search.

Up to 5 days

Real estate search.

Selection of optimal options.

Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Property Selection

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Customer charges:
  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration
Additional services:

Property management

Sales Process
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

None

the management process
Contract of the owner and agency

1 hour

Contract of the owner and agency
Rendering of management services

1 year

Rendering of management services
Reporting

1 day

Reporting
Expenses of the owner:

5% of the annual rental price

Additional services:

None

Investment Process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Selection of optimal investment options

From 3 days

Selection of optimal investment options
Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Expenses of the investor:
  • 2% when investing in the secondary market
  • 0% when investing in a new building
  • 4% - registration
Additional services:

Property management