By Sam Bridge
New research shows average property price in Dubai falls to AED895 per sq ft in November
Property prices in Dubai fell to AED895 per sq ft on average in November, representing their lowest level for seven years, according to new research.
The Dynamic Price Index (DPI) from Property Monitor, the UAE-based data platform, covers property price movement in Dubai across 42 geographic communities and is indexed to a base period of January 2008.
While property prices have declined, the volume of sales transactions has risen, with November marking one of the strongest months for sales in the past decade.
A total of 5,025 transactions were recorded with off-plan (Oqood) registrations representing 60.8 percent, Property Monitor said.
At an emirate-wide level, the index value for November fell to 124.9 from 126.6, representing a monthly change in prices of -1.35 percent and a yearly decrease of 11.63 percent.
It said property values are now at their lowest point in seven years, with these levels last seen in December 2012.
Whilst prices are down 27.5 percent from the September 2014 peak, they remain above the previous market low of April 2009, it added.
Zhann Jochinke, chief operating officer, Property Monitor said: “The inverse relationship between property values and the volume of transactions is a natural economic occurrence, partly driven by increased real estate supply. However, whilst property values might be at multi-year lows, the higher transactions reflect buyers’ long-term confidence in the Dubai property sector.
"The increased availability of affordable properties for a larger segment of the audience is certainly a positive, but developers must readjust earlier expectations of potential returns.”