By Staff writer
New report says International City apartment prices have slumped most during past year
Dubai apartment prices declined, on average, by 3 percent in the first quarter of 2016, continuing the falls seen throughout the last year, according to property consultant Cavendish Maxwell.
Its Dubai Residential Market Report for Q1 2016 said apartment prices slumped by an average of 7 percent over the past year, with the highest drop of 11 percent in International City.
The report said villa prices fell by an average of 3 percent in Q1, a faster rate of decline than the 1 percent seen in the previous quarter.
Year on year, the decline was measured at 8 percent on average, with established communities such as The Meadows and Springs declining at 12 percent and 14 percent respectively.
Cavendish Maxwell said the delivery of new developments in Dubai has increased the options for tenants as they move out of the traditional established locations towards emerging areas of Dubai including Dubai Sports City and Dubailand, representing good value for money.
It added that prices have declined at a faster rate than rents, leading to more attractive gross rental yields in the market.
The report noted that the delivery of additional villas into the market has created a downward pressure on rents in the past 6 months although rents in Arabian Ranches held steady with no change on average.
Approximately 4,600 residential units have been completed in the first quarter of 2016, 10 percent of which were projects delayed from 2015 and mainly located in JVC, Dubailand, and Mohammed Bin Rashid City, the report added.
Looking back at realtor predictions for the first quarter of 2016, the majority had predicted apartment and villa prices to decline by up to 5 percent.
The majority of agents also believed rents would remain the same across Dubai when in fact on average they declined across all unit types and areas.
Looking forward to Q2, the majority of agents predict that both apartment and villa prices will not change in the following three months.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.