JLL: Dubai residential sector shows signs of stability in Q3 2019
Apartment and villa rental prices declined 1%, and apartment sale prices increased 1% in Q3 2019, compared to Q2 2019
Dubai’s residential sector remained relatively stable during Q3 2019, registering marginal declines of 1% in both apartment and villa rent prices, while apartment sale prices increased by 1%, compared to the previous quarter, according to JLL’s UAE Real Estate Market Q3 report.
Real estate and investment management services firm JLL expects sale prices and rentals to remain largely unchanged in the Dubai residential market through the next 12 months.
More than 6,500 units were completed in Q3 2019, bringing completions for the year to around 23,000. Major completions in Q3 2019 included Sparkle Towers in Dubai Marina, Sidra villas in Dubai Hills Estate, and BLVD Crescent in Downtown Dubai. An additional 33,000 units are expected to enter the market by the end of the year.
During Q3 2019, Dubai Land Department (DLD) announced the launch of the first official house price index for Dubai. The index, called Mo’asher, will publish data related to sales prices and rents in Dubai, and is due to be launched by end of October.
According to the JLL report, DLD is now responsible for registering all rental contracts in Dubai, taking over the role from Real Estate Regulatory Agency (RERA). While, DLD will regulate the relationship between landlords and tenants along with rental contracts, RERA will be responsible for regulation and overseeing real estate development escrow accounts and accrediting financial institution that are qualified to manage these accounts.
Retail rents in Dubai remained stable in Q3 2019, but softened across all mall categories, compared to the same period last year. Market wide vacancies are estimated to have increased to 19% in Q3 2019, from 16% in Q3 2018.
JLL expects retail rents to remain under pressure through the next year given the level of upcoming supply, evolving consumer tastes, and the rapid proliferation of disruptive technologies.