The property values in Dubai have fallen 22.3percetn since its peak level of mid-2014 says a local Dubai consulting firm ValuStrat in its report. The residential capital values slumped by nine percent in Q3, 2018, the decline has slowed to 2.9 percent as against the previous quarter. Prime locations all across Dubai registered a decline more than four percent including Jumeirah Islands, Business Bay, Palm Jumeirah (apartments) and Discovery Gardens.
On the other hand, Capital values for the villas in Palm Jumeirah and Al Furjan remained muted as compared to the second quarter of the current fiscal year.
Haider Tuaima, head of real estate research at ValuStrat said that "Our research has shown that this quarter saw increased investor focus on ready-to-move-in apartments and villas priced between Dh3 million and Dh5 million, causing the average ticket size to jump."
It is to be noted that during the last three months, established areas that reported considerable off-plan sale transactions included Downtown Dubai at 85 percent of sales being off-plan, Business Bay at 84 percent and Remraam 75 percent.
For off-plan homes, the average ticket prices tanked by 3.8 percent quarter-on-quarter (QoQ) on the other hand, ready property ticket sizes jumped 9.5 percent QoQ; the numbers are suggesting improved customer interest in prime properties.
The report from ValuStrat showed that an estimated 12,332 apartments and villas, 27 percent of the total supply which was expected at the start of 2018, have been completed year to date. Seventy percent of the total completion which amounts to 8,614 units was situated chiefly in five areas including Dubailand, Jumeirah Village Circle, Dubai Silicon Oasis, International City phase 2/3 as well as Dubai Marina.
Rents in the real estate sector tanked by 11 percent year-on-year basis, however, the fall stood at 5.1 percent on the quarterly basis. Listed rents slipped by 11.1 percent for apartments and 10.2 percent for villas at the current levels as against last year.