New statistics from Dubizzle show that prices have dropped or remained stable in popular areas of Dubai
Dubai Marina, Dubai Land and Jumeirah Lake Towers were the most popular places for apartment rentals between January and August 2019, according to new data released by Dubizzle Property.
According to Dubizzle's statistics, the investor favourite - Dubai Marina - saw average decreases of 3 percent in rental prices for 1, 2 and 3 bed-room apartments, bringing average annual asking prices to AED 70,000, AED 100,000 and AED 159,000, respectively.
Similarly, JLT saw an average decrease of 4 percent, although prices for 1-bedroom apartments experienced decreases of 9 percent, averaging AED 60,000. Two and three-bedroom apartments, however, did not witness a significant change, with small fluctuations of -1 percent bringing average costs down to AED 85,000 and AED 109,000, respectively.
Dubai Land - which includes Sports City, Motor City, Remraam and Dubai Production City - saw prices decrease by an average of 14 percent.
When it came to villas for rent, Dubai Land was found to have received the most interest from property seekers. The average rent for 2, 3 and 4-bedroom villas is AED 85,000, AED 110,000 and AED 140,000, respectively.
While popular, Mirdif and Jumeirah Village Circle recorded no significant fluctuations in price.
Dubai Marina and Dubai Land were the most popular for users looking to buy apartments. In these areas, prices softened by approximately 9 percent and 10 percent, respectively, between January and August.
In Downtown Dubai, which was among the top five most desired communities in the emirate, 1 and 2-bedroom apartments were found to average at AED 1.4 million and AED 2.4 million, respectively.
While the Dubizzle data shows a clear interest in apartments for sale in prime locations, demand for villas was predominantly in new locations such as Dubai Land and Jumeirah Village Circle.
“The rental and sale price fluctuations really reflect the correction of the property market. With supply levels in newer areas going up, and communities in prime locations becoming more affordable, tenants and home buyers are increasingly spoilt for choice. This trend is likely to continue for the next 12-18 months, as supply levels continue to increase with 124,000* new units expected to enter the market by 2021," said Matthew Gregory, director of Dubizzle Property.
"It will take some time for existing and new supply to be absorbed completely. The upcoming EXPO 2020 and positive government initiatives will contribute to the stabilization of the market in the foreseeable future,” he added.