By Gavin Gibbon
Average annual residential rent in Dubai is $23,951, according to ValuStrat report
The value of properties in Dubai fell by 10.4 percent on average in 2019, according to the latest report from local consulting firm ValuStrat.
Capital values dropped more than 15 percent annually for apartments in Discovery Gardens and Dubai Production City.
While four out of 26 locations witnessed single-digit declines, villas in the Meadows, Palm Jumeirah and Emirates Hills, as well as apartments in Dubai Sports City.
Haider Tuaima, head of real estate research at ValuStrat, said: “An evident positive buyer sentiment has been observed for the past 15 months, boosting investor demand, this was likely due to attractive prices, fewer off-plan launches and delayed project completions.
“Annually, cash sale volumes of ready homes grew 29.7 percent and off-plan sales jumped 68.3 percent.”
According to the review, residential rents declined by 3.8 percent in Q4 compared to the previous quarter, while there was a 9.1 percent annual drop.
The average annual residential rent in Dubai was AED87,961 ($23,951) - apartments at AED67,944 and villas at AED210,918.
Dubai’s residential net yields averaged six percent, with apartments at 6.2 percent and villas at 4.9 percent.
Residential occupancy in Dubai, meanwhile, was estimated at 86 percent.
“Whilst we are not yet predicting price recovery, it is really interesting to see that more and more buyers are entering the residential market – perhaps an indication that many feel much reduced sales prices represent good value, and that it is now about the right time to buy.
“Lowered borrowing costs, improved product offerings and attractive developer payment plans may all now be creating the right conditions for improved buyer confidence in Dubai’s property market,” said Declan King MRICS – MD & group head real estate ValuStrat.
A total of 24,613 residential units were confirmed to have been completed during the year, 19,505 apartments and 5,108 villas/townhouses, with more than half of the new supply concentrate in Dubailand, Jumeirah Village Circle, Dubai Marina and Mohammed Bin Rashid City.