REPORT: Where apartment value has dropped the most in Dubai
According to a new report published by Asteco, the average rate of apartments in the city decreased by as much as four percent in the third quarter of this year.
The Q3 Dubai Real Estate Report found that Dubai Marina witnessed the greatest decline, falling by 19 percent. Downtown Dubai followed with 18 percent while Sports City and Bur Dubai followed with 16 percent.
The report compared the year-on-year rate of property value and found that Business Bay and Dubai Marina witnessed an 8 percent drop compared to last year, while Dubai Sports City, International City and Jumeirah Village, each recorded a 7 percent decrease.
Interestingly, the only two areas that remained on par with previous recordings were The Greens and DIFC.
The report also highlighted changes across all property types in Q3. Sales in office space have maintained constant while the villa segment has experienced a 1 percent downfall.
Speaking on the news, the Managing Director of Asteco, John Stevens said: “The Q3 results clearly showed a rise in transactions across the market, as owners and tenants continued to secure the best deal possible. However, while the market remained flat or witnessed marginal decreases, some areas did show more pronounced drops, particularly year on year.”
Asteco’s report coincides with that published by the Propertyfinder Group earlier this year.
The study was conducted on 23 neighbourhoods across Dubai between September 2016 and March 2017. It found that the sale price had dropped in 17 districts while rental values declined in 21 of the areas surveyed.
According to the report, Downtown Dubai experienced the greatest decline at 6.7 percent while IMPZ and Dubailand reported a 3.6 percent and 3.5 percent drop, respectfully.
Speaking on the decline at the time, Propertyfinder’s chief commercial officer, Lukman Hajje said: “The report confirms what most have suspected; prices continue to ease, both in sales and rentals across most communities in the UAE.”
He added: “There are a number of elements at play; high levels of construction in the lead up to 2020 increasing supply and competition for buyers and renters; a new reality of oil prices at US$50 per barrel, a historically strong dollar making UAE property comparatively more expensive despite the declines, and a historically low GBP and Euro encouraging British and European owners to liquidate their UAE property holdings to realise currency profits."