Dubai properties are now cheaper

November 10, 2016 5:23 pm

Source: Alamy

Residential and office property sales in Dubai fell sharply in the third quarter of 2016, according to the latest report by leading property broker Chestertons.

 

Expert: Robin Teh, Country Manager – UAE & Valuations & Advisory Director, MENA

 

Residential sales

Transaction volume:  Decreased by 24 per cent

Transaction value: AED3.45 billion, down by 29 per cent compared with Q2

Most popular area: Marina, sales worth AED654 million

 

Expert opinion:

Dubai Marina will always be an attractive location for investors, with consistently high levels of yields. The highest transaction values remained in the prime areas, such as Emirates Living, Palm Jumeirah and Downtown Dubai. However, as investors bide their time on the bottoming of the Dubai market, total transaction volume and values dropped in the last quarter, compounded by the traditional lull in activity due to the summer and holiday season.

 

Read: Alert: New affordable property launched in Dubai

 

Villa and apartment sales prices: Dropped by nearly 1 per cent

Areas where apartment prices fell: Business Bay (AED1,350 per sqft), Discovery Gardens (AED850 per sqft), International City (AED695 per sqft) and The Views (AED1,470 per sqft)

Where apartment prices remain unchanged: Dubai Motor City, JLT and Remraam

 

Expert opinion:

We expect prices to remain at stable levels leading up to the end of 2016.

 

Office sales

Transaction volume: 24 per cent less compared to Q2

Transaction value: AED389m, a drop of 20 per cent

Most popular area: Business Bay, followed by JLT

 

Read: What’s wrong with Emirates?

Residential rentals

Apartment and villa rents: 1 per cent drop across unit types

One-bedroom apartments: Remraam at AED 57,000 per annum

Two-bedroom apartments: Downtown Dubai, JLT and the Greens dropped 2 per cent

Three-bedroom apartments: DIFC, Downtown Dubai and Dubai Marina unchanged

Four-bedroom villas: Arabian Ranches at AED 245,000 per annum

Palm, JVT and The Springs remain unchanged

Expert opinion:

Demand remains relatively stable, with tenants having more negotiating power in the current market. Job losses and lower spending capacity have placed pressure on rates in Q2 and Q3 2016.

 

Gross yields

Apartments: 6 to 8 per cent

Exception: International City and Discovery Gardens, where yield is 9 to 10 per cent

 

Villas: 4-6 per cent

Exception: Palm Jumeirah and Jumeirah Islands, where it is 3 per cent

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AMEinfo Staff
By AMEinfo Staff
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