While most areas have seen a sustained downward pressure on sales prices over the past three years, a few locations have seen an uptick during the first quarter this year. According to Core Savills, Dubailand was the only community to enjoy a rise in apartment sales prices, which increased an average 2.7 per cent year-on-year.
Among villa communities, the Palm Jumeirah and Emirates Hills were the only ones with a noticeable price increase of 3.6 per cent and 3.5 per cent respectively. Explaining the uptick in apartment prices in Dubailand, the Core Savills report said, “Most new sales activity is concentrated within this area with lower entry prices driving sales. However, many launches are in fact at a higher price per square foot — keeping the area averages steady.”
The year-on-year increase in apartment sales prices in Dubailand
Apartment prices in the more central districts of Downtown Dubai and Dubai Marina, on the other hand, dropped 7.5 per cent and 6.6 per cent year-on-year respectively. The impact of new stock on secondary sales prices is “one of the strongest reasons causing a delay in sales price recovery” in these areas, explains Edward Macura, partner at Core Savills. In Downtown Dubai, some new developments were launched at much lower prices, “indicating that developers are significantly undercutting the captive secondary sales market”, the report said.
Phased deliveries in Mira, Mudon and Arabian Ranches, meanwhile, have negatively impacted prices in villa communities such as The Springs and The Meadows, as new buyers are drawn towards newer homes. With some 15,500 units expected to be delivered over the remainder of the year, Core Savills expects sales prices to remain under pressure in most locations.