No Decline Seen In Dubai Realty Prices In April

The prices for residential property in Dubai remained largely stable in the month of April this year, states a new report by the ValuStat Price Index, which did not decline for the first time in almost two years.

Vis-à-vis the January 2014 index which saw a 100 point base, the April 2016 index clocked just 98 index points, sans any major changes even when compared to the preceding seven months.

In a clear signal that the market may be at its lowest ebb, a statement by the company stated that a minor price recovery in select areas point to a possible bottoming-out of monthly values for villas and apartments.

Significantly the market for villas in Dubai registered 96.7 points in April (unchanged from March), while apartment values increased slightly to touch 98.8 points, up 0.3 per cent since the beginning of this year.

Elaborating on the trend the report said that after a nine-month relatively stable market, more end users were trying to enter the realty market in anticipation of long-term capital gains while simultaneously saving on monthly rentals.

The index fell by an estimated 3.5% y-o-y in values while transaction volumes were also down by almost 6%, the report states, adding that demand was likely to increase going forward driven by increased buyer interest in competitively priced properties and flexible payment plans offered by many developers.

Dubai has thus far seen about eight off-plan residential projects launched in the first quarter, with an estimated 2,000 additional units expected by 2021. Major projects on the anvil Include: Damac’s Aykon City, Dubai Properties’ Bella Casa - Serena, Azizi’s Royal Bay Palm Jumeirah and Emaar’s Harbour Views and Sidra Villas among others.

Dubai’s market for residential property has been facing some turbulence recently with a recent report by JLL pointing at a 10% slump in sales. As per the report, various factors including a strong dollar impact on GCC currencies and low oil prices, was making Dubai property more expensive for buyers from traditional non-USD markets.