By Staff writer
New report says location is key to price performance last month as overall market shows little change
Dubai's residential property market witnessed mixed price performance during July depending on location and quality, according to the latest report by ValuStrat.
The July ValuStrat Price Index (VPI) showed monthly uplifts of between 1.1-3.9 percent in mid-affordable apartment locations, compressing net yields by an average of 0.2 percent.
The report added that negative price adjustments were recorded for some locations of Dubai, averaging 1.3 percen, while the majority of locations, particularly for villas, saw no change in monthly prices.
Compared to a 100 point base in January 2014, the July overall residential VPI registered 97.7 index points, with no significant change in values when compared to the previous 13 months.
The latest index score represented a 0.7 percent decline when compared to the same month last year.
During July, the villa market registered 96.7 points, down just 0.2 percent since January and the apartment market registered 98.4 points, also down 0.2 percent since the start of the year.
ValuStrat's overall VPI also revealed a price to rent ratio of 19 years for villas and 14 years for apartments while net yields were -4.4 percent for villas and 5.3 percent for apartments.
ValuStrat said last month that residential property values in Dubai declined by 1.1 percent in the second quarter of 2016.
Earlier this week, CBRE said average residential rental and sales rates continued to decline across Dubai during the second quarter of 2016, but performances are highly fragmented by location.
Its Q2 2016 Dubai MarketView said the devaluation of major currencies against the US dollar, spurred by global economic uncertainty, has impacted investor sentiment in the emirate's real estate market.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.