Property transactions in Dubai ‘decline by 23%’
Chestertons says seasonal decline in second quarter offset positive trend of Q1
The total number of residential transactions in Dubai during the second quarter of 2017 declined 23% from the previous quarter, seemingly impacted negatively by the onset of summer, estate agency Chestertons MENA said.
After a promising start to 2017, the sales of off-plan properties plummeted by 28% in terms of volume and by as much as 43% in value, according to a report.
Transactions of completed units were also down by 17% in volume and 7% in value.
Apartment sales provided some consolation for the market as it remained flat q-on-q while villas saw a 3% increase. However, rental rates for both villas and apartments fell by 2% during the same period.
“The positive momentum from the first quarter did not translate into increased activity in the second quarter, as the decline was evident in both completed-units and off-plan transactions, with the total volume of residential transactions down 23%,” said Ivana Gazivoda Vucinic, Head of Advisory and Research, Chestertons MENA. “Seasonality and an amount of uncertainty have curbed transactional volumes. However, we expect increased activity as we approach second half of the year.”
Gazivoda Vucinic added, “It is also expected that sales and rental values will maintain the same trend, moving into the last quarter of the year when transactional activity picks up again.”
The introduction of new stock negatively impacted the sales prices in areas like Business Bay and Dubai Land at 12% and 10% respectively. While Downtown recorded a 7% decline, due, in part, to the release of a number of branded residences in the area.
