Dubai residential market softening continues in Q3
Population growth will absorb planned residential completions even as prices decline by 3% to 5% in the next 12 months, Cluttons said
The values of apartments and villas in Dubai registered a drop in the third quarter of 2015.
Apartment prices dipped by 0.8%, and villa prices by 0.5%, in Q3, marking the fifth consecutive quarter of price reduction in the segment.
High-end apartments in Dubai Marina were 3% cheaper, and 2.5% cheaper at Palm Jumeirah, in the quarter.
The average value of residential property in Dubai stood at AED1,441 per square foot (psf) at the end of Q3, with Burj Khalifa being among the city's most expensive schemes at AED3,700 psf.
In its Residential Market Outlook for Dubai, Winter 2015/16 report, Cluttons said: "In the short term, it is our expectation that there will be further house prices declines in the region of 3% to 5% over the next 12 months, as the economy absorbs the impact of faltering global growth.
"Project population growth will readily absorb the planned residential completions in the medium term, with a bottoming out likely at the tail end of next year," the report continued.