New mid-year Asteco report on the UAE real estate market published just before the biggest industry event, Cityscape Global exhibition, has defined the main prospects for the property market.
The report noted market’s relative stability during summer months. A dramatic prices decline was observed mainly in the luxury segment, where prices fell by 10%, whereas affordable housing, by contrast, has shown steady growth.
In those Dubai areas with a continued developers’ focus towards the affordable segment, prices have increased over the summer months. IMPZ, Discovery Gardens and Dubai Silicon Oasis recorded 3%, 6% and 2% prices increase over the last three months respectively, while Dubai areas with elite expensive housing, such as Dubai Marina, Jumeirah Beach Residences and Palm Jumeirah saw prices decline by 10-13% over the same period.
"Newly launched properties with reasonable price and/or payment plans, and healthy prospective ROI, have been attracting solid investment interest, which will define market movement in the months to come as affordability remains a major driver for sales," said John Stevens, managing director, Asteco.
"The second half of the year will see around 7,000 units come online, and while average rental rates have been relatively stable over the last few months, albeit with significant differences between areas, we expect the new stock to exert further downwards pressure in the next few months; and through to 2016 with 13,000 more apartments due for completion," he added.