Dubai’s residential property values have fallen with average prices now hovering around what they were during January last year, according to Gulf News.
This is according to the newly created ValueStrat Price Index, which also found that the correction was most pronounced at JBR and Downtown. The Palm also saw some of this, the ValuStrat report adds.
On the rental side, the findings suggest that there was some respite for Dubai’s residents, dropping 2.2% in the last six months. But the bad news for them is there was a 1% increase over the last three months.
But the burden of high rentals has been running for a much longer period than that — ValuStrat’s estimates place average rental gains in the city to be around 25.6% in the last 24 months. Clearly, corrections are not happening in the rental space, and that’s where the crux of the issue lies in the overall Dubai property market.
“When we analyse transactional data in Dubai, one of the challenges is that the information is based upon pricing that may have been agreed months or even years before,” said Haider Tuaima, Research Manager. “In a fast-changing property market this means it may already be out of date. Additionally, it is not always possible to filter the statistics into usable components … Or we may just find the sample sizes are too small to extract valid findings from.”