The decline in Dubai house prices slowed in the third quarter

A research from Emirates NBD revealed a slowing pace of prices decline in Dubai property market.

Latest Real Estate Tracker survey, presented by a real estate department of the Emirates NBD, registered a slowdown in Dubai property prices decline in the last three months.

The number of new enquiries from property buyers in general and from foreign investors in particular has also increased compared to the previous quarter, Emirates NBD report said. 17.1% of real estate agents in Dubai have noticed a rise in prices for villas in the third quarter of the year, whereas in the second quarter, this figure was only 10.8%.

New buyer enquiry index for apartments rose to 50 points in the third quarter from 37.8 points in the previous quarter, while new buyer enquiry index for villas grew from 25.7 up to 38.6 points. This buyers’ activity rate, according to the surveyors, signalizes of the healthy demand in the property sales segment with adequate prices.

As for the rental sector, 45.6% of agents noted a significant increase in rental prices in the third quarter. Overall Dubai rentals keep rising, albeit at a slower pace. The demand is, however, not up to par, and experts expect a decline in rental prices in the short term. However, the situation in the rental sector is still very controversial: real estate mid-market and affordable housing continue to attract tenants, while elite property is not so much in demand, which still doesn’t force landlords to lower rents. More than two-thirds of tenants noted an increase in rental cost after lease contracts renewal in the last three months.

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