New report also says rents have fallen by more than 13% in the past year
Property prices in Dubai are more than 15 percent lower than their 2014 peak with "overwhelming" off-plan sales causing a further delay to the wider market, according to a new report.
Real estate consultancy ValuStrat said its property index for the fourth quarter of 2017 registered price declines in most locations, by as much as 4.4 percent for Jumeirah Lake Towers and 2.6 percent for Arabian Ranches.
Other locations saw the pace of their quarterly declines slow to less than 0.5 percent, including Dubai Marina while prime locations such as Downtown Dubai, Palm Jumeirah, Emirates Hills and Jumeirah Islands proved to be immune from the negative trends.
The median residential transacted price for ready homes declined 7.3 percent annually and 4.8 percent compared to the previous quarter, with villa prices falling faster than apartments, the report noted.
Overall residential asking rents were 13.1 percent lower annually and 3.1 percent on a quarterly basis. Compared to the same period last year, rents were down 13.2 percent for apartments and 12.3 percent for villas.
ValuStrat said landlords have become more accommodating in reducing rents for existing tenants approaching lease renewal.
Its report also said that approximately 72 percent of the projected 25,000 units in Dubai for 2017 were completed with 50 percent of total 18,000 completions concentrated in four areas - Al Furjan, Dubailand, International City and Dubai
Several off-plan projects were launched in Q4, to add more than 30,000 units to the residential pipeline by 2023, it added.