A new report by the popular in the UAE real estate portal and analytical resource Reidin recorded a further decline in Dubai rental prices, Emirates 24|7 cites.
However, despite the continued decline in prices in May, the rental costs in the emirate are getting cheaper not as rapidly as it was in April, according to the report data. If the April month-to-month decline was an average of 0.67%, the same figure in May stayed at around 0.37%.
Apartment rents fell by 0.44% during a month, but annual growth rate is still present at this part of Dubai’s property market. In May it stood for 1.2% compared to the same period last year. Villas rents also fell during a month by 0.44%, but remained unchanged in terms of annual growth.
As for property sales prices, Reidin data also revealed some reductions on month-to-month basis: in May month’s apartments sales index fell by 1.19%, and on year-to-year basis — by as much as 6.8%. Villas sales prices year-to-year decline was not that dramatic and stood at about 0.8%, but in May villas sales prices fell by 1.72%.
Moody's and Standard & Poor's Dubai predict a decline in property prices by 10-20% in 2015 in Dubai, but it is expected that public spending on infrastructure projects in preparation for the Dubai World Exhibition Expo 2020, as well as government’s efforts in attracting foreign investments in various sectors of the economy and businesses will enhance the real estate industry over the next five years.
“We generally believe our rated issuers could absorb a 10 to 20 per cent drop in residential sales prices in Dubai because they are better armed than they were in 2009 in terms of revenue predictability and mix, product mix, and solid capital balance sheets,” Standard & Poor's report said.