Dubai property prices fell in 2015: Asteco
Villa and apartment sale prices down 11% and 8% respectively
Sale prices of Dubai villas and apartments fell by 11% and 8% respectively in 2015, while average rents dipped one percent across the board, according to a report by Asteco.
The real estate consultancy said villas on the Palm Jumeirah recorded a price decline of 13% over the year, dropping to AED 2,475 per square foot on average. The Meadows was also down 15% to AED 1,150, while Jumeirah Beach Residence was down 16% to AED 1,370 per square foot.
However, it said that new communities such as Mudon and Arabian Ranches Phase 2 saw improved levels of activity, offering better-priced and good quality alternatives to some of the more established areas.
The biggest rental declines were seen in areas such as Jumeirah and Umm Suqeim where three-bedroom villas dropped more than AED 50,000 or 20% on an average to hit AED 195,000, while larger four-bedroom villas in Arabian Ranches and Jumeirah Park were down 19% to AED 243,000 and 15.5% to AED 145,000 respectively.
Only Al Barsha and Mirdiff bucked the rental trend with the former recording an increase of 9.2% for three-bedroom villas to AED 213,000 per annum and properties in the latter rose 4.2% to AED 138,000.
The report says that a total of 13,500 apartments and 800 villas were added to Dubai’s residential real estate supply in 2015, while 22,000 apartments and 7,700 villas are scheduled to be delivered in 2016, which is likely to see the downward rental rate pressure continue through to 2017.
John Stevens, managing director at Asteco commented on the report saying: “With fresh new supply entering the market, this is forcing property owners, especially of older independent villas, to become increasingly competitive on pricing.
“If we look to the medium and long-term, the outlook is more positive with demand more than likely to grow in line with the progress of key infrastructure projects currently underway, such as Dubai World Central Airport and Expo 2020.”
