New report says rate of decline is softening compared to previous months
Average residential property prices in Dubai continued to fall in January, according to new research from analysts REIDIN.
Its UAE Residential Property Price Indices (RPPIs) for January 2018 showed that prices in Dubai fell marginally by 0.14 percent.
Thes index also showed that prices fell by 3.67 percent year on year. Apartment sales prices dropped slower than villas although the annual decrease was larger - 3.74 percent compared to 3.36 percent for villas.
REIDIN said a few areas in Dubai such as Dubai Sports City, Discovery Gardens and Dubai Marina registered a sales price increase last month.The Dubai Residential Property Rental Price Index revealed a decrease of 0.43 percent in January and a 7.65 percent decline year on year.
Apartment rental prices registered a decrease in January of 0.29 percent and a 7.43 percent annual decline while villa rental prices registered a 1.22 percent month on month drop and 8.85 percent slump year on year.
Rental prices in some affordable areas such as Discovery Gardens, Jumeirah Village Circle and Dubai Silicon Oasis showed minor uptick changes, REIDIN added.Ozan Demir, REIDIN’s operations and research director, said: “Dubai and Abu Dhabi residential sales markets have continued to soften during January albeit on a lower rates when compared to previous periods due to subdued real estate investment activity. Even though average sales transaction ticket prices remained unchanged, number of residential transactions in the secondary and off-plan markets have declined around 25 per cent year-on-year in January 2018.”The Abu Dhabi Residential Property Sales Price Index showed a 0.40 percent fall in January and a 8.04 percent decrease year on year.
Apartment sales prices fell 0.50 percent month on month and 9.21 percent year on year while villa sales prices registered a 0.1 percent decrease in January and a 4.25 percent year on year fall.Rents fell by 0.99 percent in January and by 10.85 percent year on year. Apartment rents decreased 1.03 percent month on month and also decreased 11.20 percent annually while villa rents fell 0.92 percent in January and by 9.55 percent year on year.