Dubai rental prices to continue to fall to 2018
Dubai’s rental prices are expected to continue to fall into 2018 as the emirates real estate sector appears to be bottoming out
Dubai’s rental prices are expected to continue to fall into 2018 as the emirates real estate sector appears to be bottoming out, according to Propertyfinder Group.
The real estate portal said that median Dubai property sales prices fell 20% in the 18 months from November 2015 to April 2017, while median rental prices dropped 21% over the same period.
With a further 28,000 new units in Dubai scheduled for release by year-end, consultants JLL estimate that the slump in prices could continue to at least 2018.
Dubai property prices have been falling since mid-2014 and have now returned to 2012/2013 levels, creating more interest for potential investors and an optimum time to buy property.
Lukman Hajje, Propertyfinder chief commercial officer, said: “Dubai is far more complete, more regulated and a far more mature city today.”
According to Propertyfinder data, the sustained slump has also bolstered yields, protecting buy-to-let investors from a further downturn in the rental sector. The pace of declines in both rental and sales values has also slowed.
“In the popular Springs community, it is now possible to achieve net yields of up to 6.5% and net returns on equity of circa 10% for finance buyers using 75% loan-to-value mortgage products,” said John Lyons, head of sales & leasing at Espace Real Estate.
The Dubai property sector witnessed a 25% increase in overall transactional activity in the first quarter of 2017.