Propertyfinder Trends report shows that rents have fallen most in Abu Dhabi with near-21% declines in the past two years
Asking prices for property rent and sale are generally down across Abu Dhabi, Dubai, and the Northern Emirates, with the exception of Sharjah, where apartments for sale have remained in positive territory, according to a new report.
Propertyfinder Trends, which compares asking price data over the last 24 months, said hardest hit were Abu Dhabi apartments for rent, which have declined nearly 21 percent in the past two years.
This compares to neighbouring Dubai where apartment rents are said to have fallen by 18.2 percent in the same period.
Apartment sales prices in the UAE capital have fallen by 11.7 percent since 2016 while in Dubai the price decline is steeper at nearly 14 percent. The biggest price decreases for apartments were seen in Ajman (16.5 percent).
The report said some areas in Dubai are showing signs of life with villas for rent are up 5.4 percent and 2.4 percent in Jumeirah Village Circle and Mudon, respectively. Arabian Ranches stayed flat over the same period.
Propertyfinder's report also showed that villas for sale on the Palm Jumeirah are up 5.2 percent in the last six months, the only area to record an uptick in this segment.
Apartments for sale in Dubai Investment Park were the only units to go up in asking price in this segment, rising 2.7 percent while Barsha Heights, in apartments for sale, stayed flat, down just 0.2 percent in asking prices.
The report added that Al Furjan is the only area in Dubai where asking rental prices have gone up (+2.7 percent) in the last six months.
"For more than a year, the overriding sentiment has been that prices are at, or very close to, the bottom of the cycle and will increase in the lead-up to Expo 2020,” said Lukman Hajje, chief commercial officer of Propertyfinder Group, in the report.
“But supply continues to exceed demand and the pundits, myself included, have continually been proven wrong as prices have continued to fall. Will we be right this time?”