Dubai Property Prices Q3 2016
Average residential sales rates for Dubai Property Prices Q3 2016 were broadly stable, recording no change compared with the previous quarter, despite a significant slowdown in the number of transactions, down by 22% compared with Q2 2016 (Reidin). Rates appeared to have stagnated in the last few months at levels similar to the pre-Expo 2020 announcement. However, with many off-plan property launches at competitive rates, Developers could potentially face some pressure in the near future. A significant increase in activity in the area closest to the new airport was recorded in the last few months, such as the launch of Emaar’s Urbana at Emaar South and various projects in Dubai South.
Most of these recent releases had significantly lower asking prices compared with the current market pricing as Developers are expanding into the affordable segment, by reducing unit sizes and launching projects in secondary locations. These low prices in Dubai South could only be applicable for initial launches to increase take-up and create momentum for the area as it is the closest to the Dubai Expo site and the new airport, which will in time generate a significant amount of employment.
Apartment prices remained broadly stable over the quarter; with Buyer’s preference continuing to be for smaller units in more affordable communities. We expect transaction levels to increase over the next few months as the general perception indicates the market is bottoming out.
After dropping nearly 20% year-on-year, rates in Dubai Marina remained stable and similarly DIFC, Greens, and JBR were stable this quarter.
With ample options available in the market, at various prices and attractive payment plans, Buyers have significant choice. They also appeared to be better informed compared to previous years, as they researched their options, pricing, payment plans, and Developer’s track record.
Off-plan products launched by the Master Developers achieved a strong take-up due to attractive sales prices and payment plans.
Apartment rental rates remained stable this quarter, with some variations depending on localities, whereas villa rental rates were down by 1%, on average, over the quarter as a large amount of newly delivered stock was vacant and competing to find Tenants. See our full post on Dubai Rental Rates 2016.