Dubai Property Prices 2015

Dubai Property Prices 2015

Dubai Property Prices 2015

Sale prices for apartments and villas in the United Arab Emirate of Dubai continued to decline in the third quarter of 2015. The reasons given for this is a ‘torrent’ of newly announced projects, global uncertainty and a raft of measures taken by the Dubai government to stymie rapidly rising property prices in 2013.

It is now estimated (Q3 2015) that supply is growing at an average rate of 3.9 per cent, outpacing demand, which sits at 3.7 per cent.

Five-year demand pipeline forecasts for employment growth lies at a pretty robust 5.8 per cent a year, but real estate supply continues to outstrip this – projected at 5.9 to 6.7 per cent growth per annum over the period.

Dubai’s price performance thus far in 2015 has been remarkably weak, in late 2014 and into mid-2015 Dubai was the world’s worst performing residential property market recording losses of around 15.5% in the residential market to the end of Q2.

According to CBRE, Dubai house prices also fell in the two months to the end of August by another 2 per, equating to a 6 per cent fall compared with the same period a year earlier.

Most commentators expect residential price declines to continue until the end of 2017, due to market and geopolitical risks. Liquidity constraints, essentially a lack of bank lending, are also weighing on the market as well as the currently strong US dollar – to which the United Arab Emirates dirham is pegged – and ongoing low oil prices.

The strong dollar has also resulted in quite a few ex-pat owners looking to sell units, which is adding to market supply. There is on the ground anecdotal evidence of more distressed sales along with these deals motivated by exchange rate movements.

Dubai Property Prices 2015

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