By Staff writer
ValuStrat Price Index for December says average prices showed no change compared to previous month
Average property prices in Dubai held steady in December for the second month running since the start of a market correction in mid-2014, according to a new report.
The December ValuStrat Price Index (VPI) for Dubai's residential market showed that, on average, there was no monthly change in values across the 26 areas it monitors for apartments and villas.
The December VPI registered 97.9 index points, with no significant change in values when compared to the previous five months.
Compared to a 100 point base in January 2014, the Dubai villa market registered 96.9 points in December and the apartment market 98.6 points, similar to September, October and November.
ValuStrat's November VPI also revealed price to rent ratios of 19 years for villas and 13 years for apartments in Dubai.
The report also said net yields were unchanged in November at 4.5 percent for villas and 5.6 percent for apartments.
In November, ValuStrat said property prices in Dubai had declined by more than 10 percent over the past year as investor interest has fallen, adding that 2016 is likely to witness a plateau in prices.
Earlier this week, the official rental index for Dubai was updated for 2016, with one- and two-bedroom apartments showing a decrease in prices across much of the emirate.
According to the new price brackets suggested by the Real Estate Regulatory Authority (RERA), rents for one-bedroom flats have dropped by between 4.55 percent and 11 percent.