Bayut.com says the cost of renting and buying property in Dubai has continued to fall since mid-2017
The cost of renting and buying property in Dubai has continued to fall since mid-2017, but most price decreases remain modest, according to Bayut.com, the real estate portal.
Rental decreases reported in the first half of 2018 averaged between 2-9 percent, it said in a research report.
The biggest drop was seen among 1-bed apartments in Deira which fell by 15.38 percent over the past 12 months, Bayut said.
After Deira, the next steepest price decrease was for 2-bed apartments in Dubai Sports City (down 10.59 percent).
It added that Dubai Marina was the most popular for apartment rentals, with Marina Diamonds receiving the highest percentage of searches in the area.
Regarding property sale prices, Bayut said Dubai Marina prices fell by about 5 percent 1-bedroom and 2-bedroom apartments.
It said Dubai Marina was also the most popular for apartment sales, with Manchester Towers receiving the highest number of searches.
The average cost for renting a 1-bed in the area popular with expects was AED87,000 while the price for a studio reached AED850,000.
Haider Ali Khan, CEO of Bayut, said: “The average property price decreases in Dubai from H2 2017 are in line with what we foresaw last year.
"We are seeing that renters and buyers are still firmly in the driving seat, with renters likely to bargain with landlords to negotiate a lower rent, or upgrade by moving to a larger property or a new area. The decreases in sales prices open up opportunities for buyers too.”
He added that he expects to see more first-time buyers coming into the market - people who traditionally would have just rented a different place might consider buying given the lower prices.
"As we move into the later half of the year, we expect the prices to hover around where they are right now and for the serious parties, there will be great opportunities to invest at good price points.”
Bayut said for villas, the most popular area for rentals, was Mirdif, where the average price for a 3-bedroom property was AED120,000 while for sales, Arabian Ranches was the most popular area, and the average price for a 3-bed villa falling by 6.25 percent to AED3 million.