According to Dubai 2015/16 Winter Residential Property Market Outlook by Cluttons, prices in the segment of apartment sales in Dubai were down by only 0.8% in the third quarter, while prices for villas declined even less, by 0.5% in a quarter.
According to the report, a small decline in prices, in the region of 3-5% may persist in the Dubai housing market through 2016 under the influence of the global economic downturn and the gradual but steady increase of the housing stock due to the new handovers in the emirate.
Steven Morgan, CEO of Cluttons Middle East said: "We expect 7,400 units to complete in 2016, 10,300 in 2017 and a further 13,600 in 2018, with the new schemes launched during the past quarter, helping to even out the balance between villas and apartments. Over the next three years, 48% of the units delivered will be villas."
The change in Dubai residential prices in recent months was most clearly evident in the luxury segment, while prices in other segments have not changed. Morgan explained this trend with the popularity of off-plan property sales, which is, he said, “partly fuelled by the fact that off-plan residential property prices are often 20-30 percent lower than completed secondary stock, which in essence might allow buyers to bypass some of the stringent lending criteria and also possibly avoid the need for a mortgage altogether."
As for the luxury segment, despite the decrease in activity in this Dubai market sector, the emirate still offers property buyers the best quality for money, better than the most other major world centers can offer, which is aiding the performance of this segment of the market, Morgan said.