Search by map
According to Asteco, a leading real estate research firm in the UAE, in Q2, the Dubai property market continued to experience downward pressure on rentals both for villas and apartments, as well as on the purchase prices in the sales sector. Read more for how much rates went down.
Dubai's property market is under continuous pressure due to a decline in villa and apartment rental rates and sales prices during the Q2, said Asteco, a leading property analysis service provider in the UAE, in its latest Dubai Real Estate Report Q2 2018.
The rents are likely to fall far below along with expected key projects delivery across Dubai, said the consultancy.
Villa and apartment sales prices fell by 4 per cent over the quarter, with an YoY (year-on-year) drop of 11 per cent.
Among Dubai areas, which showed most significant decrease in apartment sales, there were and with a 6 per cent decrease in Q2 of 2018.
And the biggest quarterly drops in villa sales prices were registered in such locations as (8 per cent), (5 per cent) and The Springs (5 per cent), said Asteco in its report.
Despite an overall bearish outlook from investors and end users, sales activity remained rather high, which fact being mainly attributed to further numerous off-plan project launches, often with increasingly attractive incentives, competitive rates and extended payment terms.
A whole bunch of brand new shiny residential projects were launched during the second quarter in Dubai, including Amaranta 3 and Tilal Al Ghaf Phase 1 in , as well as Zawaya – a mixed-use community in , and I & II in .
John Stevens, the managing director of Asteco, said: "Generally, new developments focused on the affordable segment, resulting in a marginally more noticeable quarterly drop in sales prices at five per cent, compared to three per cent for mid- and high-end properties”.
And what properties get the best competitive advantages at the background of this overall downturn in demand with tenants and buyers having more offers to choose from? Experts claim that real estate units in buildings with good management and maintenance service usually have much more possibilities to hold steady occupancy rates, as well as landlords offering discounts and additional incentives to their tenants.
As for villa rental rates, Jumeirah Park and Jumeirah Village recorded the most prominent annual decrease at 15 per cent, followed by Arabian Ranches with 11 per cent downturn.
But still, Asteco sees good prospective for Dubai real estate market to develop towards Expo 2020 and beoynd:"The UAE has always been a real estate investment haven, and the new laws will attract an untapped pool of international investors seeking a tolerant country with deep-rooted values to call home," Stevens emphasized.
To grab this fabulous opportunity and get use of all current market trends, with prices decrease being the most obvious, please, contact us directly at IMEX Real Estate, and we will fetch you exactly what you need. Our contacts:
Tel.: +7 903 232 80 80 Oleg Lavrik (Whatsapp, Viber, Telegram)
Tel. UAE: +971 (50) 2528188
Toll Free in Dubai: 800-IMEX (800-4639)
IMEX REAL ESTATE BROKER LLC, UAE
Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE
Email: pm@IMEXre.com
Skype: resident69
