'Softening' of Dubai property expected in 2017
While residential sales values have declined, the rental market "looks set to experience further deflationary pressures", a recently released CBRE report revealed
A "continued softening" of Dubai's real estate market is expected during the remainder of 2017, property consultancy CBRE said.
Despite "pockets of stability, such as the prime office market", all sectors within the city's real estate segment are expected to face weaker prospects.
CBRE's Dubai Market View Q2 2017 report revealed that residential sales values in Dubai "have continued to show modest declines" in a trend expected to continue in H2 2017, "albeit with further fragmentation, and just marginal single-digit declines anticipated".
The report added: "However, amidst a period of elevated supply deliveries, the rental market looks set to experience further deflationary pressures, broadening the tenant-led market, and ultimately handing bargaining power to new tenants.
"This is likely to result in further rental discounts, flexibility on the number of cheques, and even rent-free periods for some secondary locations."
Commenting on the report's findings, Mat Green, head of research and consulting for the UAE at CBRE Middle East, said Dubai's residential sales market has marked an improvement.
"The sales market has witnessed an improvement in transaction numbers during 2017, with off-plan properties remaining favourable amongst investors, underlining the speculative nature of the local market."