Dubai property prices continued to fall during the second quarter, according to two new reports.
Residential apartment sales fell 1 percent, according to JLL, and 2 percent, according to Cavendish Maxwell.
Villa prices declined between 2-2.4 percent, the reports said.
The downturn follows negative results in the first quarter in further evidence the Dubai market rebound from its 60 percent plummet in 2009-10 has stabilised. However, the second quarter declines were smaller than the first three months of the year.
Both reports suggested the price declines would remain at minimal levels, without any significant sudden drop.
“The extent of the compression will be better established throughout the third quarter and leading up to Cityscape Dubai where the activity at and preceding the event is typically a good gauge of market sentiment,” said the Cavendish Maxwell report, based on the consensus view of its members, who are chartered surveyors and residential valuers.
Dubai Marina, Jumeirah Beach Residences (JBR) and Dubai Sports City managed to hold their value better than other parts of the emirate, declining an average 1 percent, while Motor City and Discovery Gardens declined the most at 3 percent.
There had been an increase in off-plan sales rather than existing properties, particularly in the newly developed areas of Dubai World Central (DWC), Dubailand and Mohammed Bin Rashid City (MBR City), the report said.
There also was a decrease in buyer enquiries during the quarter, according to both reports.
“Buyers seem to be in a ‘wait and see’ period following the decline in prices in Q1 and Q2 of 2015,” Cavendish Maxwell said.
The number of residential sale transactions registered with the Dubai Land Department declined 69 percent and the aggregate value reduced by 66 percent during the first half of the year compared to the same period in 2014, JLL said.
The 7,400 deals transacted during H1 2015 were worth a total value of AED12.7bn.
“These figures come as no surprise given Dubai’s residential market was booming over the first half of 2014, and units in the primary and secondary market were overpriced,” JLL said.
“These levels of decline in transaction activity have resulted in a single digit decline in sale prices, contrary to the major declines seen in 2008/2009, reflecting signs that Dubai’s market is maturing.”
A report by Tasweek Real Estate Development earlier this month also said residential property prices in Dubai had peaked during 2014, although it predicted they could begin to reclaim the losses so far this year by the end of 2015.