Property prices in Dubai have declined by more than 10 percent over the past year as investor interest has fallen, according to a new report.
The third quarter 2015 real estate report issued by consulting firm ValuStrat said that with a steady decline in prices, stagnant investor interest, delayed supply, stable rents and decreasing sale volumes, next year may witness a plateau in prices, indicating a buyer's market.
The Residential ValuStrat Price Index, which tracks residential values in 26 key locations in Dubai, has shown a 10.3 percent annual decline and 0.9 percent quarterly dip in property values.
July's VPI registered 98.4 points, while August and September registered 98.2 and 98.1 points respectively.
Residential transacted prices saw a 14.7 percent annual decline, although investor interest has increased for bargains and distressed sales with a sentiment of improved market activity in the coming months, ValuStrat said.
When compared to the second quarter, transacted residential prices dropped by 5.6 percent, it added.
On average, apartment asking rents dipped by 4 percent in comparison to the same period last year, and villa rents were down by 6 percent.
Compared on a quarterly basis, apartment asking rents declined slightly by 1 percent, and villa asking rents fell by 4 percent, the report said.
In terms of housing supply, it said Dubai's residential market anticipates a total supply of 18,000 apartments and 3,770 villas in 2015.
Fifteen off plan projects were launched in Q3 to add more than 30,000 units to the residential pipeline by 2025, the report said.
"Twenty-seven percent of this year's residential projects with approximately 7,800 units scheduled for completion, are delayed and have been rescheduled for handover during the next two years, reflecting some construction slowdown in this sector," said Haider Tuaima, ValuStrat research manager.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.
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