Prices of residential units in Motor City in Dubailand have almost reached 2014 peak, with the real estate market registering monthly gains, according to a new report.
ValuStrat, a property consultancy, said that a quarter of all locations monitored by its price index (VPI) are within 10 percent or less of their 2014 highs, with Motor City now just one percent away from reaching its former peak price.
Compared to a 100-point base in January 2014, the May 2017 residential VPI reached 96.8 points, down 1.2 percent compared to same period last year. Overall, residential prices are 14.2 percent below their 2014.
Palm Jumeirah, Emirates Hills, Downtown Dubai and Business Bay registered monthly gains of between 1.8 percent and 2.8 percent.
“It will be interesting to see if these positive trends continue in subsequent months and if additional areas become included,” said Haider Tuaima, research manager, ValuStrat.
However, Dubai Marina, Jumeirah Beach Residence (JBR) and Jumeirah Lake Towers (JLT) sustained declines with apartment prices remaining 15 percent to 28 percent below their 2014 peaks.
In May, average net rental income (income after expenses) stood at 4.1 percent for villas and 4.8 percent for apartments, the report said.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 Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.