ValuStrat says citywide capital values are now more than 22% lower than the peak of mid-2014
Average property prices in Dubai fell by nearly 3 percent in the third quarter of 2018 compared to the previous quarter, according to a new report from consulting firm ValuStrat.
The report said the continued downward trend resulted in citywide capital values falling by 22.3 percent since the peak of mid-2014.
ValuStrat said quarterly declines of more than 4 percent were registered in Jumeirah Islands, Business Bay, Palm Jumeirah (apartments), and Discovery Gardens while values for villas in Palm Jumeirah and Al Furjan remained mostly flat as compared to Q2.
All established freehold locations monitored by ValuStrat witnessed price drops since the last quarter, ranging from 0.2 percent to 5 percent, it added.
The report also showed that established areas that witnessed substantial off-plan sale transactions during the last three months included Downtown Dubai at 85 percent of off-plan sales, Business Bay at 84 percent and Remraam 75 percent.
Average ticket prices for off-plan homes fell 3.8 percent on a quarterly basis, while ready property ticket sizes jumped 9.5 percent on the same basis, suggesting improved interest in prime properties, ValuStrat noted.
“Our research has shown that this quarter saw increased investor focus on ready-to-move-in apartments and villas priced between AED3 million and AED5 million causing the average ticket size to jump,” said Haider Tuaima, head of research at ValuStrat.
The report noted that an estimated 12,332 apartments and villas, 27 percent of the total supply as expected at the start of 2018, have been completed so far this year.
ValuStrat also revealed that overall residential asking rents fell 11 percent in the past year and 5.1 percent since Q2.