Dubai property prices down by 10% in Q1 – JLL
Rents also 5% lower in the first three months of 2016
Dubai residential property prices fell by 10% year-on-year in the first quarter of 2016 due to buyers having less purchasing power and the stronger dollar, according to JLL.
Apartment and villa sales prices fell 10% and 11% respectively, while rents saw a decrease of 5% compared to the same period last year, the property advisory firm said.
The rate of decline in both the rental and sales markets is however slowing, suggesting that the Dubai residential market is approaching the bottom of its cycle, JLL’s report noted.
In terms of residential supply, a total of 2,200 residential units were added in Q1, taking the total stock to 458,500 units, including apartments, villas and townhouses.
“The continued period of low oil prices is tightening regional liquidity which is also affecting the real estate market,” said Craig Plumb, JLL MENA Head of Research.
“Whilst the short- to medium-term outlook for the Dubai real estate market is less encouraging, we remain positive on the long-term outlook due to future growth and demand drivers like the Expo 2020 and other mega infrastructure developments.”
