Property

Dubai house prices to fall 1-5% by July, says Deloitte

Softening of prices suggests market is maturing, financial-advisory firm says

PHOTO: Dubai property transactions have “slowed to a more sustainable level,” Deloitte said. Credit: Shutterstock

Residential sales prices in Dubai are expected to drop by 1 to 5% in the first half of this year before stabilising in the second half of 2015, Deloitte has forecast.

Transactions have “slowed to a more sustainable level,” according to a statement by Deloitte Financial Advisory, and this trend is expected to continue for the rest of 2015.

“Whilst possibly not welcomed by traders and speculators, this new characteristic suggests a market that is in fact maturing and arguably strengthening,” said Robin Williamson, managing director of Deloitte Corporate Finance Limited.

“Provided growth continues at sustainable and realistic levels over the medium term, this is likely to improve end-user and investor confidence, which will have obvious benefits to the Dubai property market as a whole.”

Affordability for UAE nationals and expatriates will also gain more attention this year, with areas like International City and Sports City continuing to see strong demand, Deloitte added. 

While foreign investors will continue to drive demand, sales volumes might be affected by growing stability in Egypt and financial and political issues in Russia.

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