Dubai sees 'clear trend' of plateau in real estate prices in May

New report highlights further signs of a bottoming out in the market, with some locations showing minor price uplifts
Dubai sees 'clear trend' of plateau in real estate prices in May
(Getty Images)
By Staff writer
Mon 06 Jun 2016 04:46 PM

Dubai's real estate sector saw a "clear trend" of a plateau in prices during May, signalling further signs of a bottoming out in the market, a new report said on Monday.

The May 2016 ValuStrat Price Index (VPI) said it also witnessed minor price uplifts and notable increased transaction volumes in several locations during last month.

The report said May's data added to possible signs of a bottoming-out in monthly values across most of the 26 areas it monitors for apartments and villas.

Compared to a 100 point base in Jan 2014, the May 2016 overall residential VPI registered 98.0 index points, with no significant change in values when compared to the previous eight months and down 1 percent when compared to the same period last year.

"This marks a continuation of evidence of price stabilisation," the report said.

It added that during May, the villa market registered 96.7 points, down 0.2 percent since January and the apartment market registered 98.8 points, up 0.3 percent since January.

ValuStrat's report also showed that price to rent Ratios stood at 19 years for villas and 14 years for apartments.

Dubai property prices have been more volatile in the past decade than in other centres.

Residential prices in the emirate fell 50 percent from a third-quarter 2008 peak to mid-2009, suffering a second downturn in early 2010, industry consultants Cluttons estimate.

Prices then rebounded from 2011 following an influx of money and people displaced by uprisings in several Arab countries, recovering to within 18 percent of 2008 peaks.

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.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.