In July, ValuStrat analytical agency’s experts recorded a significant uptick in Dubai house prices. But only in a some of the market categories.
In general, the emirate’s housing market keeps demonstrating its multidirectional development in respect of prices. While one of its segments recorded growth, the others see prices stay stable or decrease. This time, affordable property sector became the flagship of the price increase, again due to increased market demand, and despite great supply numbers. ValuStrat July data revealed an average price increase in the range from 1.1% to 3.9% in this segment of Dubai housing market mostly depending on apartments quality and location.
The report also says some areas still saw a mere decline in prices, but the majority of Dubai locations, especially in villas and luxury real estate segments, saw no change in monthly prices.
ValuStrat Price Index (VPI) for Dubai uses prices maximum recorded in January 2014 as a 100 point absolute value to track price changes in comparison with this maximum. Over the past 13 months, property prices in Dubai demonstrated no changes, with overall residential VPI registering 97.7 index points in July 2016.
But things can change, after the actual, rather than forecasted, number of new homes will be delivered in Dubai this year. CBRE and other experts believe that the market will be fueled with another 15,000 new residential units, most of which will be handed dover in areas such as Dubailand (35%), Dubai Silicon Oasis (20%) and Jumeirah Village (6%). And among the most popular luxury locations Dubai Marina is expected to feel the largest influx of new units: approximately 8% of all new apartments scheduled for completion in 2016, will be built there.