Dubai resi prices set to continue fall
Accountancy firm Deloitte predicts drop of up to 5% in H1 before the market stabilises later this year
Big Four accountancy firm Deloitte has said that it expects residential property values to fall by between 1% and 5% in the first half of 2015 before levelling off in the second half of the year. Transaction levels are set to settle to around 1,000 per month.
The firm said that although (according to Economist Intelligence Unit figures) the UAE's real GDP growth is set to slow from 4.7% last year to 3.3% this year, the population is set to continue to grow as a result of new migration. Numbers grew by 5% last year to 2.3m and are set to rise by a similar level in 2015.
“Dubai’s property market has experienced another year of change, with a leveling off in capital growth, in certain areas, towards the end of the calendar year," said the managing director of Deloitte's corporate finance arm, Robin Williamson.
"Whilst possibly not welcomed by traders and speculators, this new characteristic suggests a market that is in fact maturing and arguably strengthening.
"Provided growth continues at sustainable and realistic levels over the medium term, this is likely to improve end-user and investor confidence."
It added that with 20-35 year-olds making up around 50% of the Emirate's population, affordability for both nationals and expatriates will become an increasingly important issue.
Already in 2014, traditionally secondary areas like The Views, Jumeirah Lakes Towers and International City saw a strong growth in sales prices
For 2015, "areas such as International City and Sports City, where more amenity is planned, will continue to experience strong demand", the report added.