Rental declines were more pronounced in Dubailand, The Greens in Emirates Living, Motor City, Arabian Ranches and Victory Heights
Sales prices across Dubai’s residential market registered declines of 1.4 per cent and 1.3 per cent for villas/townhouses and apartments respectively during the third quarter (Q3) of the year, a report said.
Meanwhile, rental declines have averaged 1.3 per cent over the same period, added the Q3 2018 Dubai Market Report from Cavendish Maxwell, an independent firm of chartered surveyors and property consultants. The data is provided by Property Monitor, a real estate intelligence platform powered by RICS accredited property professionals.
Rental declines were more pronounced in Dubailand, The Greens in Emirates Living, Motor City, Arabian Ranches and Victory Heights averaging 12 month change of around 7 per cent. According to Property Monitor’s database of rental contracts, the majority of the rental agreements for residential properties in Q3 2018 were in one cheque(45 per cent of total), which has increased by 7 per cent compared to last quarter. Rental payments made in 4 cheques decreased by 2 per cent over the quarter.
Residential sales
Off-plan transfers accounted for 53 per cent of the total transfers in Q3 2018. Business Bay, Mohammed bin Rashid City and Jumeirah Village Circle dominated the off-plan apartment transfers during the third quarter of the year. On the other hand, International City, Dubai Marina, Jumeirah Village Circle led the secondary market apartment transfers, which accounted for 31 per cent of the total apartment secondary transfers during Q3 2018.
Secondary market transfers among villas surpassed the off-plan transfers in Q3 2018, led by Emirates Living, Arabian Ranches, Mudon developments which together accounted for 30 per cent of the total secondary market transfers registered during the third quarter.
Residential supply
The majority of the upcoming supply over the next six months is concentrated in Business Bay, Jumeirah Village Circle, Dubai Sports City, Dubai Silicon Oasis and Town Square. Approximately 72 per cent of the upcoming supply over the next six months is expected to be handed over during Q4.
Increasing handovers will continue to impact rents in most locations across Dubai as tenants have more choice. This will also impact occupancies in existing stock and should be factored into net yield estimations for the forthcoming period.
Property Monitor Residential Survey
The report also incorporates the Property Monitor Residential Survey, conducted among partner agents operating within Dubai. The survey shows that majority of agents expect prices and rents to decrease by up to 5 per cent in Q42018. However, majority also believe that the transaction activity will improve over the next quarter and buyer enquiries, seller instructions and agreed sales will be higher than those in Q3.
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