The year’s third quarter was highly indicative of the Dubai real estate market’s further outlook, said Cavendish Maxwell consultancy in its recent report.
According to statistics compiled by the consultancy’s experts, Dubai residential property prices between July and September decreased in the same moderate pace as in the previous second quarter. An average decline was about 2%, although different market sectors showed rather discrepant results.
Apartments and villas sales prices in Dubai, according to Cavendish Maxwell, decreased equally by 2%, and were close to the average for the residential real estate sector as a whole. But annual Dubai property prices decline rates pronounced by Cavendish Maxwell are almost twice lower from that previously proposed by JLL and Tasweek: Cavendish Maxwell analysts had counted, that Dubai apartment prices fell by 6%, while villas prices declined by 9% in a year.
Meanwhile, rental sector saw no prices alterations in the third quarter, all experts agree: apartment rentals remained unchanged, while villa rentals fell slightly in the third quarter.
Such Dubai areas as Dubai Sports City, Dubailand, International City, Jumeirah Golf Estates, and Jumeirah Village Circle, saw 6000 new housing units entering the market in the third quarter, the report said. However, demand from property buyers, especially in the affordable housing sector, still outperforms supply.
Premium housing prices in such Dubai areas as Business Bay, Downtown, Burj Khalifa and Palm Jumeirah slowed decline in the third quarter of the year, while the areas with more affordable housing, such as International City, Motor City and Discovery Gardens, showed the most significant prices decrease figures: property prices here fell by 9-10% over a 12 month period from Q3 2014.
Prices also began to fell faster in Jumeirah Islands, Victory Heights, Arabian Ranches and Al Furjan, and slowed its decline in Jumeirah Golf Estates, the Meadows, Springs and Lakes, the report said.