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

Apartment values dropped by 2.5% at Palm Jumeirah.
Apartment values dropped by 2.5% at Palm Jumeirah.

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. 



Most popular


Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the


CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 765
Jun 29, 2020