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A new report from reputable research firm Cavendish Maxwell confirmed further price reductions in sales and rental segments of the Dubai real estate market in the third quarter. Read more for what property prices Dubai is about to come to the end of the year with.
Sales prices across Dubai’s residential market confirmed a decline of 1.4 per cent for villas/townhouses and 1.3 per cent for apartments during the third quarter (Q3) of the year, the report said.
Meanwhile, rental declines have averaged to 1.3 per cent over the same period, according to data provided by Property Monitor, a real estate intelligence platform powered by RICS accredited property professionals.
Off-plan property sales accounted for 53 per cent of the total transfers in Q3 2018. The biggest part of the off-plan deals was registered in Business Bay, Mohammed bin Rashid City and Jumeirah Village Circle during the third quarter of the year. On the other hand, International City, Dubai Marina, Jumeirah Village Circle led the secondary market apartment sales activity with 31 per cent of the total secondary apartment deals having been recorded in these areas during Q3 2018.
But at the villas and townhouses sales market secondary deals have essentially surpassed those of the off-plan transfers in Q3 2018. The biggest number of ready villas and houses were sold in such developments as Emirates Living, Arabian Ranches, and Mudon, which together accounted for 30 per cent of the total secondary market transfers registered during the third quarter.
On the rental side, declines were more pronounced in Dubailand, The Greens in Emirates Living, Motor City, Arabian Ranches and Victory Heights averaging to around 7 per cent year-on-year. According to Property Monitor’s database, one cheque tenancy deals dominated among rental agreements for residential properties in Q3 2018 totaling 45 per cent of all rental deals recorded and matching an increase of such deals by 7 per cent compared to previous quarter. Four cheques rental agreements decreased by 2 per cent over a quarter.
The majority of the upcoming supply over the next six months is concentrated in Business Bay, Jumeirah Village Circle, Dubai Sports City, Dubai Silicon Oasis and Town Square. Approximately 72 per cent of the upcoming supply over the next six months is expected to be handed over during Q4.
The survey also revealed that the majority of real estate brokers expect prices and rents to decrease by up to 5 per cent in Q4 2018. However, many of them believe that transaction activity will improve over the next quarter, and buyer enquiries, seller instructions and agreed sales will be higher than those in Q3.
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