By Andy Sambidge
Latest price increase falls from 5% in Q1 as new regulations take effect, according to new report
House prices in Dubai rose by three percent during the second quarter of 2014, down from five percent in the previous quarter, according to a new report by Colliers International.
The report also showed a year-on-year increase of 20 percent between Q2 2013 and the end of June this year
It said apartment prices increased by five percent in Q2 while villa prices showed no change in the same period.
Townhouse prices increased by five percent in Q2, Colliers said, adding that Dubai’s residential property market appears to be stabilising.
It said its report indicates that the key measures introduced by the government to curb the growth in house prices at the end of last year - including a mortgage cap and a doubling of transfer fees - have had a positive outcome.
The index, which was established in 2008 using actual mortgage transaction data from a consortium of financial institutions, highlighted a slowdown in the rate of growth achieved over previous quarters.
The three percent rise in Q2 compared to a five percent increase in the previous quarter.
Commenting on the report, Ian Albert, regional director at Colliers International said: “The pace of growth over the last quarter has slowed considerably to a more modest level, this can be largely attributed to the forward thinking measures introduced by the government to dampen property speculation and safeguard the market.”
In terms of the top areas in Dubai, Palm Jumeirah, Motor City (apartments) and Jumeirah Lake Towers recorded the highest year-on-year growth in sales prices, while Dubai Marina, Downtown Dubai and Jumeirah Lake Towers saw the highest number of transactions.
“While it’s too early to call a trend, the signs are mounting that price growth is easing back to a more sustainable pace,” Albert added.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.
I suggest Mr Ian Albert:
1/ To start looking for a new "real productive" job. What he is saying is totally wrong. He is from the Industry and he is perfectly aware of the trend since the beginning of the year. There is no increase at all both in terms of value and in terms of number of transactions. The key word is DECREASE in both cases. 2/ Losing his credibility in Dubai market which is a small market, I suggest him to migrate to Saudi for the same position. Then we will see whether he could come up with so obvious lies or not. Those 2 suggestions are valid for all the real estate liars in the UAE.
Any normal person can just look at the DLD data to see the huge reduction in transaction volumes and the reduction in prices in key areas like Palm Jumeirah, Arabian Ranches, Marina and even Downtown Dubai.
Prices have been correcting since the start of 2014 and none of the Real Estate related companies like Colliers will admit to it because it is not in their best interest.
Colliers on their website says "Our experts provide a full range of property services to real estate owners, occupiers and developers" - Why oh why do AB insist on getting their real estate data from companies with vested interests in the market like Colliers, Knight Frank, JLL, Better Homes, Property Finder etc. instead of doing their own research from the data that exists online from DLD and drawing their own conclusions?
Buyers should do their own research instead of taking the word of these companies who's business is reliant on higher volumes and higher prices....