Dubai residential property prices said to fall 12.4% in past year
ValuStrat Price Index for the first quarter of 2019 shows that prices dropped by 3.2% compared to the previous quarter
Residential property values in Dubai have fallen by 12.4 percent on average over the past year, according to real estate consulting firm ValuStrat.
Its ValuStrat Price Index (VPI) for the first quarter of 2019 also showed that prices dropped by 3.2 percent compared to the previous quarter.
This downward trend resulted in 27.1 percent citywide capital value loss since the peaks of mid-2014, the report added.
It noted that all established freehold locations monitored by the VPI witnessed price drops since the last quarter, ranging from 1.8-5.2 percent.
On an annual basis, five out of 26 locations measured saw single-digit declines, while capital values dropped more than 16 percent annually for villas located in Jumeirah Islands, apartments in Palm Jumeirah, International City, Discovery Gardens, Business Bay, and The Greens.
“As capital values softened by an average of 1 percent per month for the last 16 months, a six-month streak in buying activity has been observed for both off-plan and ready homes,” said Haider Tuaima, head of real estate research at ValuStrat.
The Q1 2019 residential rental VPI in Dubai stood at 76.5 points, declining 23.5 percent since 2014, and softening 1.9 percent quarterly and 9 percent annually.
ValuStrat said Dubai’s net yields averaged 5.5 percent, with apartments at 5.7 percent and villas at 4.5 percent while the average residential occupancy rate stood at 88 percent.
As far as residential supply is concerned, the report said last year’s project completions reached 20,364 units which is equivalent to approximately 45 percent of the initial total projections.
For 2019, expected supply was adjusted downwards to 42,176 apartments and villas. This number is 54 percent less than the preliminary supply forecast as more delays are expected during the year, mitigating excessive residential supply concerns.
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