By Staff writer
New report also says buyer inquiries continued to decrease in third quarter while seller instructions increased
Dubai property prices fell by two percent in the third quarter of 2015 following a similar decline in the previous quarter, according to a new report by consultants Cavendish Maxwell.
Its Dubai Residential Market Report said apartment and villa prices have both dropped by an average of two percent between July and September. Year on year, it said apartment prices have fallen by six percent and villas by nine percent.
The report added that apartment rents in Dubai remained stable in Q3, while villa rents decreased in most of the major villa communities.
Approximately 6,000 residential units have been introduced into the market in Q3 in areas such as Dubai Sports City, Dubailand, International City, Jumeirah Golf Estates and Jumeirah Village Circle, Cavendish Maxwell said.
Its Q3 report showed that buyer inquiries continued to decrease while seller instructions increased. The number of agreed sales, however, has remained the same as the previous quarter.
Cavendish Maxwell said that as overall apartment prices continue to drop in Dubai, the rate of decline in prime locations such as Business Bay, Downtown Burj Khalifa and Palm Jumeirah has decreased.
In Q3, prices continued to drop at the same rate as Q2 in Dubai Marina, the Greens and Views, Jumeirah Beach Residence and International City, while prices in Dubai Sports City and Motor City declined at a more accelerated rate throughout this quarter.
Prices in secondary locations such as International City, Motor City and Discovery Gardens declined the most at 10 percent, 10 percent and nine percent respectively over a 12 month period from Q3 2014.
In the more central and established areas, prices have dropped between 4-5 percent during the same period, the report said.
"These slower rates of decline may suggest that prices will level out and stabilise leading to the end of this year," it said.
The decline in villa prices slowed in Q3 in communities such as Jumeirah Golf Estates, the Meadows, Springs and Lakes while price declines accelerated significantly in Jumeirah Islands, Victory Heights, Arabian Ranches and Al Furjan.
The report said villa market prices have dropped by approximately 4.4 percent throughout the first three quarters of 2015 and 9 percent over a 12 month period with further supply of these units being launched and completed during this period.