By Staff writer
New report by dubizzle shows average 2% rent declines in quarter but suggests price falls are heading towards 'end of cycle'
Dubai's property sales market is starting to bottom out with no overall price decreases seen in the second quarter of 2016, according to UAE-based classified ads website dubizzle.
Its Q2 2016 property report said that tenants and buyers continue to have bargaining power as the Dubai residential property market continues to level off.
Dubizzle said that while the Dubai rental market saw 2 percent declines for one- and two-bedroom apartments compared to Q1, there was no change for three-bedroom apartments.
It added that the Dubai sales market saw no overall decrease in price per sq ft, suggesting the market is heading towards the "end of the cycle and bottoming out".
In Abu Dhabi, dubizzle said the three-bedroom apartments situated on the Corniche and Sadiyaat Island experienced the biggest drops in Q2 by 11 percent and 15 percent respectively.
The report said overall one- and two-bedroom apartment rental prices decreased by 2 percent and 1 percent respectively in the UAE capital.
The report added that the Abu Dhabi sales market witnessed an overall average 3 percent quarter-on-quarter decline in price per sq ft.
Ann Boothello, senior product marketing manager for property at dubizzle said: "Sale prices [in Dubai] have decreased since mid-2014 back when they had reached their peak. The residential property sale price cycle is almost at a close as we have not witnessed any major shifts in pricing from Q1 to Q2 2016.
"Rental prices are now in the phase of bottoming out - tenants still have the upper hand with more negotiating power. Landlords are marketing their properties at more competitive prices and agreeing to three- or four-cheques to avoid having vacant properties."
She added: "Families in Abu Dhabi will consider downsizing as they are having to budget better and relocate to smaller, more affordable units. This will put further pressure on rents over the next two quarters and the drop in rental rates for three-bedroom apartments identified validates this."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.