Dubai property prices ‘to rebound over next 12 months’
The emirate has the worst-performing real estate market in the world – but 60% of residents think it will recover soon
Dubai property prices are expected to rebound over the next 12 months, a survey shows, despite the emirate’s real estate market currently ranking as the world’s worst performing.
The survey, sponsored by Emirates NBD and produced by Markit, found that 45% of real estate agents expect a rise in average property values in the next year, compared with 30% forecasting a reduction.
A complementary survey of Dubai residents found that 65% of households expect rising property values, against just 17% predicting a fall.
Despite that, Dubai property values continued to fall in the three months to August, the Emirates NBD Dubai Real Estate Tracker found.
Exactly 60% of real estate agents reported a drop in average sold prices, with only 13% indicating an increase. There was a 54% decline in new buyer enquiries, attributed to greater caution among buyers and the seasonal summer lull in transaction volumes.
“The Dubai Real Estate Tracker survey is consistent with price data and shows a further slowing in the residential real estate sector over the summer months,” said Khatija Haque, Head of MENA Research at Emirates NBD. “While the slowdown is partly seasonal, other factors including concerns about the economic outlook and USD strength have weighed on demand.”
On the rentals side, real estate agents reported a rise in newly agreed deals and increasing levels of new enquiries, causing upward pressure on prices, especially on apartments.
Among households that had experienced a rent renewal during the three months to August, 68% signalled a rise in prices.
“The lettings market remains robust both in terms of the volume and price, suggesting that population dynamics are supportive of the real estate sector,” said Haque.
A recent report by Knight Frank found that residential property prices in Dubai declined 12.2% in the year to June – pushing it to last place in the UK consultancy’s Global House Price Index.
