UAE: Dubai apartment prices fall 11% in Q3 2015
Apartment prices are expected to decline further due to tighter regulations, rising inflation and a strong UAE currency
Apartment prices have fallen by 11% in Dubai in the last 12 months and are expected to decline further due to tighter regulations, rising inflation and a strong United Arab Emirates currency, industry consultants JLL said on Tuesday, 6 October, 2015.
An influx of cash from toubled areas of the Middle East helped Dubai's property sector recover from a crash in the previous decade - however that momentum has declined since the end of 2013 with prices in retreat once again.
Apartment sales prices fell by 3% in the third quarter of 2015, and 11% year-on-year, while rents declined by 1%, JLL revealed in a recent report.
A shortage in middle-income housing is becoming an increasing problem which has led to a slump in the number of sales and a drop in prices "to more sustainable levels".
"Prices are expected to continue softening over the remainder of the year and into 2016" - before rising again ahead of Dubai hositng the Expo 2020 exhibition, JLL predicted.
House prices also fell in the third quarter, with sales down 3% on the previous quarter and 7% year-on-year.
Rents have proved more resilient due to higher sales transaction fees and tougher mortage requirements making it more difficult for residents to make outright purchases.