The decline in Dubai house prices in 2015 was not as obvious as analysts had predicted. The first report with annual price rates was presented by ValuStrat consultancy. According to the agency, average Dubai property prices have fallen by only 10.3% in a year, not 15-20% as some too pessimistic experts predicted in the beginning of the year.
Though the decline in Dubai residential prices in the year’s second half was more pronounced than in the first half, there were no rapid falls. The Residential ValuStrat Price Index, which analyzes housing prices in 26 Dubai areas and residential communities, also confirmed that prices remained almost unchanged in Q3, declining by only 0.9%.
Thus, it is expected that due to the delayed handover of many real estate projects and stable prices in the rental sector, Dubai property market next year may witness a plateau in prices, ValuStrat report said.
The average apartment rentals fell by 4% in a year, according to ValuStrat, while villa rentals dipped by almost 6% in a year.
As for the influx of new offerings to the market, ValuStrat experts predict, that in 2015 Dubai residential stock will have another 18,000 new apartments and 3,700 new villas.
Fifteen new projects were launched in the third quarter of the year in Dubai. Thanks to them, Dubai will have another 30,000 new houses before 2025. However, 27% of this year projects, which were to add 7800 new units to the existing stock, was postponed so as not to oversupply the market. They will be handed over in the next two years.