Residential real estate prices dropped by 12.7 percent year-on-year in the third quarter of 2015, research by industry consultancy Tasweek has claimed, reflecting other market analyses published recently.
Tasweek’s latest UAE market report found that Dubai saw the most substantial decreases in average residential sales prices.
On Tuesday, consultancy JLL’s latest market report claimed apartment prices in Dubai have fallen 11 percent in the past 12 months and will decline further because of tighter regulations, rising inflation and a strong UAE currency.
However, Tasweek then added that residential prices in Dubai “remain stable overall”. The median transacted apartment price was AED11,560 ($3,147) per sq m (AED 1,074 per sq ft) for Q3 2015, while the median transacted villa price was AED13,024 per sq m (AED 1,210 per sq ft).
Dubai Marina continued to rank first in Tasweek’s ‘top 10 most trafficked areas’ list, while Downtown Dubai and Palm Jumeirah posted the highest apartment and villa prices, respectively.
The report noted that an additional 26,100 apartments and 2,400 villas are set for completion by 2016, while 18 off-plan residential projects launched in the second quarter of this year will add 5,000 units to the residential pipeline by 2019.
Elsewhere in the UAE, real estate prices have held up despite indications pointing to a softer second half, according to Tasweek’s report, which said the UAE property market “performed resiliently” in Q3 2014 and prices “did not go down as significantly as expected”.
It listed the best deals found across Abu Dhabi in the past quarter – including apartments in Downtown Reef (AED 950/sq ft); Al Raha Beach (AED1,400/sq ft), Marina Square (AED 1,450/sq ft) and Saadiyat Beach (AED 1,450).
The best deals for villas were found at Hydra Village (2- and 3-bedroom units for up to AED 1.4 million), Al Reef (2- and 3-bedroom villas for up to AED 2.1 million) and Al Raha Gardens (2- and 3-bedroom villas for up to AED3.1 million).
The best annual rental rates for Abu Dhabi apartments were offered at Muroor Road, with prices of AED57,750 (Studio), AED 68,250 (1-bedroom), AED 84,000 (2-bedroom), AED 126,000 (3-bedroom), and AED 168,000 (4-bedroom).
The Al Markaziyah area also gave good rates of AED 57,750 for studio units and AED 78,750, AED 94,500, AED 136,500 and AED 189,000 for 1-, 2- 3- and 4-bedroom apartments, respectively.
Masood Al Awar, CEO of TASWEEK Real Estate Development and Marketing, said: “We were pleasantly surprised with how the market performed against expectations this Q3. This sets the sector up for a good year overall as it slowly prepares for a stronger and better 2016.
“As our report noted in Q2, diversification, favorable demographics and a sound regulatory environment will continue to protect the UAE’s property business from any harmful market shifts.”
He added: “Q3 figures show the UAE’s property sector is still ripe for growth and expansion behind strong market fundamentals and high consumer confidence.
“Our latest market intelligence points to an even better 2015 than previously expected, which will serve the industry well as it gears up for more activity ahead of the country’s Expo2020.”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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