By Staff writer
Emirates NBD's latest Dubai Real Estate Tracker survey also shows rental growth during three months to October
The pace of price declines in Dubai's real estate market has slowed during the three months to October, according to Emirates NBD's latest Dubai Real Estate Tracker survey.
It said there was an improvement in the new buyer enquiries index and the new international buyer enquiries index, particularly for apartments, suggesting there is demand at the right price.
Data for the residential lettings market was also encouraging, with agents reporting rental price growth for both apartments and villas in the three months to October, albeit at a slower pace than in the August survey.
Although the price of both apartments and villas declined in the three months to October, the rate of decline was less than in the August survey, according to estate agents.
In particular, 17.1 percent of agents reported higher prices for villas in Q3, compared to 10.8 percent in the previous quarter.
The survey showed that the volume of sales declined further in the October survey, with some agents noting that sellers were reluctant to reduce prices while buyers had adopted a more cautious approach in an environment of greater economic uncertainty.
According to the survey, more agents reported increased new buyer enquiries in Q3 as the new buyer enquiry index for apartments rose to 50.0 in October from 37.8, while the villa index rose to 38.6 from 25.7.
Interest from international buyers has also improved, with 25 percent of agents reporting increased enquiries from new buyers, up from just 14.6 percent in the three months to August.
The survey said the total number of new villa lettings declined in October, while volumes were flat in the apartment sector. Nevertheless, agents reported higher rental prices in the three months to October with the composite index at 56.8.
The rate of price rises has eased since the summer however. Once again, apartments have outperformed villas, with 45.6 percent of agents reporting higher rental prices for apartments, compared with 36.8 percent for villas.
New enquiries for apartment rentals continued to rise, but at a slower pace than the August survey. New enquiries for villa rentals were lower on average in October.
The survey added: "The new enquiries index points to softening demand, and it is perhapsunsurprising that agents expect rental prices for both villas and apartments to decline over the next three months however."
More than two-thirds of consumers surveyed reported paying more rent for leases renewed in the three months to October, higher than the August survey.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.