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Another, next-to-last month of the year in Dubai showed that the stabilization of property prices becomes permanent. According to the ValuStrat analytical agency, November prices in the residential segment of the emirate property market didn’t go up or down.
ValuStrat analyses property prices in 26 Dubai areas for its report are bases its statistics on comparison of prices both in the villa and apartment segments. The ValuStrat Price Index (VPI) for November averaged to 98 index points, which is similar to the results of the previous two months.
Thus, November was the first month to witness no significant changes in prices in all segments of the property market since the peak in March last year, after which Dubai housing market started its price correction.
Compared to January 2014, when VPI totaled to 100 index points, villa segment registered 97.1 points in November, while apartment segment registered 98.6 points, respectively.
Price to rent ratio saw no changes in November too, as well as the average net yields and gross investment yields. Net income from investments in Dubai real estate is still one of the highest in the world and is up to 4.4% in the villa segment and 5.6% in the apartment segment.
According to ValuStrat forecast made in November, 18,000 apartments and 3,700 villas will be added to Dubai residential housing stock this year alone. Fifteen new real estate projects were launched in the emirate in the third quarter, due to which Dubai will see another 30,000 new houses before 2025. However, the handover won’t be fast enough to keep the market from absorbing all new housing without prices downturn, ValuStrat experts say.
