The addition of new stock, tough macroeconomic conditions and moderate population growth are set to place further pressure on property sales prices and rental rates in Dubai, according to a new report.
Chestertons MENA said overall sales prices for apartments and villas softened by 5 percent quarter-on-quarter in Q1, denoting the highest quarterly drop in sales prices for apartments since 2014.
Its Q1 report added that rental rates for apartments and villas fell by 2 percent, with the Greens, a standout performer in recent years, falling by 4 percent. The villa market, notably Palm Jumeirah also fell by 4 percent. “As a result of falling sales prices, many end users took advantage of the increased affordability of completed units, as evidenced by the 10 percent increase in recorded transactions from the previous quarter. This was to the detriment of off-plan transactions, which although they still dominate the market, volume declined by 19 percent,” said Ivana Gazivoda Vucinic, head of consulting and valuations and advisory operations, Chestertons MENA. #arabianbusiness #dubai #property #realestate