ValuStrat: Capital value of Dubai residential properties drops 11.5%
Price decline has resulted in 29.3% citywide capital value loss since the middle of 2014
Annual capital values have dropped by 11.5% for Dubai-based residential properties since the middle of 2014, according to consulting firm ValuStrat’s second quarterly price index report.
Data showed that quarterly declines slowed to 2.9%, with a “downward” trend that has led to a 29.3% citywide capital value loss since 2014.
It added that all established freehold locations monitored by the report witnessed price drops since the last quarter, ranging from 1.2% to 4.2%.
On an annual basis, three out of 26 locations, including villas in Palm Jumeirah and Al Furjan, as well as apartments in Dubai Sports City, saw single-digit declines, while capital values dropped more than 15% annually for apartments in Palm Jumeirah, Discovery Gardens, and The Greens.
ValuStrat’s head of real estate research, Haider Tuaima, said: “As capital values continue to soften, there was a relatively strong quarterly sales volume performance for 9 months in a row, off-plan up 5.5%, ready sales stable, when compared to Q1.”
He added: “This quarter also saw a record 10% of all ready villa sales transactions, priced higher than $2.7m (AED 10 million). [This was a] good market performance given that the holy month of Ramadan and Eid holidays fell on May and June.”