The average annual house price in Dubai decreased by 13.2 per cent, with some communities registering even higher price declines, according to Property Monitor’s Dubai House Price Index for April 2019. Prices also retreated 1.5 per cent month-month and were down 4.9 per cent during the first three months of the year compared with the previous quarter. Emirates Living, Dubai Silicon Oasis, Jumeirah Lakes Towers and IMPZ were some of the communities that registered price declines of more than 14 per cent on average. The average house price in Dubai is now around Dh2.5 million, according to the report.
“We have seen an increase in the value of off-plan transactions from January to April, compared to the same period in 2018,” said Manika Dhama, associate partner, strategic consulting and research, at Cavendish Maxwell. “This could indicate that there are more people participating in the UAE’s real estate market, and the lower prices could be a factor in driving this trend.”
Off-plan apartment transfers, meanwhile, remained high in April, although the total volume of residential transactions during the first quarter was 1 per cent lower than the same period last year. The volume of apartment transfers over the first quarter also decreased by nearly 15 per cent compared with the same period last year.
Average apartment price is around Dh1.7 million, according to the report, while villas and town houses remained relatively stable at Dh4.5 million.
The competitive pricing is creating investment opportunities.
The competitive pricing is creating opportunities for investors, although finding the right investment product can be a challenge. “For investors, it makes perfect sense to invest in an area which offers the highest returns on investments and long-term appreciation,” said Nazish Khan, COO of Fidu Properties. “This certainly makes sense in the current real estate scenario in Dubai and can be leveraged adequately in view of the wide project mix on offer.”
He added: “While the landlords of more established communities are cutting down on the prices to compete with the emerging new developments, the demand will soon catch up with supply and landlords will start to see greater returns on their investments very swiftly.”