House prices in Dubai's Motor City rebound to near 2014 peak

Dubai Marina, JBR and JLT continue to see monthly price declines, says ValuStrat

(ITP Images)

(ITP Images)

Prices of residential units in Motor City in Dubailand have almost reached 2014 peak, with the real estate market registering monthly gains, according to a new report.

ValuStrat, a property consultancy, said that a quarter of all locations monitored by its price index (VPI) are within 10 percent or less of their 2014 highs, with Motor City now just one percent away from reaching its former peak price.

Compared to a 100-point base in January 2014, the May 2017 residential VPI reached 96.8 points, down 1.2 percent compared to same period last year. Overall, residential prices are 14.2 percent below their 2014.

Palm Jumeirah, Emirates Hills, Downtown Dubai and Business Bay registered monthly gains of between 1.8 percent and 2.8 percent.

“It will be interesting to see if these positive trends continue in subsequent months and if additional areas become included,” said Haider Tuaima, research manager, ValuStrat.

However, Dubai Marina, Jumeirah Beach Residence (JBR) and Jumeirah Lake Towers (JLT) sustained declines with apartment prices remaining 15 percent to 28 percent below their 2014 peaks.

In May, average net rental income (income after expenses) stood at 4.1 percent for villas and 4.8 percent for apartments, the report said.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Investor interest in real estate investment trusts (REITs) has...

Forgotten fees: the challenge of investing in Dubai property

Forgotten fees: the challenge of investing in Dubai property

Investors attracted to low service charges at some Dubai residential...

3
Dubai real estate: which way will it go?

Dubai real estate: which way will it go?

In this special report, Arabian Business analyses the state of...

3
Most Discussed
sponsoredTracking