Dubai residential prices see 11% annual decline
The rate of decline is easing and is expected to continue to decelerate over the remainder of the year
The Q2 2015 real estate report issued by local consulting firm ValuStrat has shown a steady decline in property values since the peak last year.
However, the rate of decline is easing and is expected to continue to decelerate over the remainder of the year.
When compared to the first quarter, apartments in Business Bay and International City witnessed an average value decline of 6% and 4%, respectively, additionally villas in Arabian Ranches, Jumeirah Park and Al Furjan, saw a 3% decline.
On average, apartment asking rents dipped by 2% in comparison to the same period last year, and villa rents were down by 3%.
However when comparing on a quarterly basis, apartment asking rents remained unchanged since the beginning of 2015. However, residential rents were more than 20% higher than the same period in 2013.
In terms of housing supply, Dubai's residential market anticipates a total supply of 26,100 apartments and 2,400 villas in 2015, bringing the total number to around half a million housing units. 18 off plan projects were launched to add 5,000 units to the residential pipeline by 2019.
"5,400 residential units were completed during the first half of 2015, a further 28,500 units are scheduled to complete in 2016. This is taking into account a number of projects with approximately 3,000 units originally scheduled for handover this year, moving their schedule forward for completion during 2016," said Haider Tuaima, ValuStrat Research Manager.
Office transaction prices dipped by a marginal 0.3% since last year and 1% since the first quarter. Having said that, office asking prices during Q2 are 43.8% higher than two years ago.
The Dubai hospitality sector saw the total number of hotel rooms and hotel apartments at the beginning of Q2 2015 standing at 94,217. Twenty four new hotels were announced in Q2, adding 7,220 keys to the pipeline in the next 4 years.