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New forecast: Dubai housing prices to keep going down until the end of 2019

13.10.2019
A new report from Chestertons promises real estate buyers in the emirate a good season for investing in apartments before the end of the year.

While the decline in Dubai rental rates seems to have started to slow down in the Q3 of 2019, prices in the sales sector will continue to decline until the end of theyear, according to a new report by Chestertons, a real estate company.

About 50,000 new real estate properties are expected to be handed over this year in Dubai, and the emirate’s housing market may face an oversupply. Although this issue is controversial, and not all experts share this point of view. According to alternative sources, not all expected projects will be, in fact, completed on time, therefore, the level of realization will be no more than 30 per cent of the forecast.

According to Chestertons, the average cost of villas in Dubai fell by 3% in the third quarter, while apartment prices fell by 4% compared with the previous quarter.

“As we expected, in the third quarter there was a further decline in prices both in the segment of apartment sales and in the sector of villa sales due to an excessive offers and moderate economic growth. However, the rental market has proven more stable with a noticeable slowdown in the pace of price reductions, ”said Nick Vitti, Managing Director of Chestertons MENA.

“We expect that the initiative to provide a 10-year residence visa for the purchase of a certain type of housing at a certain cost, as well as a whole package of other economic incentives and, perhaps more importantly, the creation of a new real estate committee, which is authorized to control the balance of supply and demand, will together contribute to a more favorable forecast for the Q1 of 2020, ”he added.

As for the rental market, here, as already mentioned, the rate of decline in prices has slowed significantly, and the average cost of annual rental for villas and apartments has decreased by only 1%, and this may be a sign of the beginning of market recovery, according to the report.

At the same time, the volume of transactions for the off-plan real estate sale increased immediately by 45%, and their average cost increased by 46% to AED10.5 billion.

To always stay up to date with the latest analytics data and real estate prices in Dubai, subscribe to our newsletter using the form below. And in order to sell, lease or buy/ rent housing or commercial properties in Dubai, contact IMEX Real Estate. Our contacts:

Tel. in Dubai, UAE: +971 (50) 2528188 (Whatsapp, Viber, Telegram)

Toll Free Dubai: 800-IMEX (800-4639)

IMEX REAL ESTATE BROKER LLC, UAE

Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE

Email: pm@IMEXre.com

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