MPM Properties, a real estate subsidiary of the Abu Dhabi Islamic Bank (ADIB), presented its own report on prices correction in different sectors of Dubai real estate market.
According to the report, an overall decline in Dubai rental prices in the year’s third quarter was 2%, despite the fact that prices correction was extremely uneven in different segments of the market.
Office property sector showed a healthy rental and occupancy levels at the background of the controlled supply in the third quarter, the report said. The demand in the sector managed to maintain an upward trend, mostly from new start-ups. At the moment, the average rent per square foot of office space in the Dubai Prime Central Business District (CBD) is USD 110-120 pa, whereas secondary locations recorded average rentals of about USD 70-200 psf.
Retail property also saw a slight decline in footfall and spending in the third quarter, which, according to MPM Properties analysts, could be largely attributed to a fall in spending by tourists, although demand still outperforms supply in the luxury rental segment, despite the expansion of many shopping centers in Dubai.
The total transactions value in the Dubai real estate market fell by 8.6% in Q3, but this is a common situation for this time of year, the report said.
Also, about 2,000 new property units was handed over in the last three months in Dubai, including 807 hotel rooms and serviced apartments, taking total Dubai hotel room count to around 96,000 units.
"Much of the impact has been noticed across the luxury retail segment due to global currency fluctuations and falling oil prices. However, overall prime retail assets remain strong performers and demonstrate positive growth with waiting lists for space still over-subscribed despite expansions," said Paul Maisfield, CEO of MPM Properties.