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Dubai residential values decline by 1.1% in Q2 – ValuStrat

Residential property values in Dubai declined by 1.1 percent overall in the second quarter of 2016, according to ValuStrat’s latest market report.

The median residential transaction price in Dubai witnessed a decline of 5.7 percent year-on-year, the research said, however the median price was marginally up by 0.1 percent when compared to the previous quarter.

However, the figures showed that the monthly growth rate of residential values has been broadly stable since July last year and there are signs of a possible bottoming out of values across locations analysed by the real estate research firm.

The ValuStrat Price Index (VPI) measures the monthly price change experienced by freehold properties in Dubai.

According to the report, April and May’s residential VPI registered 98.0 index points while June dipped slightly by 0.1 percent to 97.9 index points.

Dubai’s apartment VPI showed a slight improvement from the previous quarter, up 0.1 percent while villa VPI declined marginally by 0.1 percent.

The median apartment value in June was AED 1,316 per sq ft while for villas it was AED1,366 per sq ft.

Nine locations saw an appreciation in values, with International City recording the highest quarterly improvement of 2.3 percent. Motor City increased by 1.3 percent and Dubai International Production Zone (IMPZ) increased by 0.6 percent.

Eight areas witnessed marginal quarterly declines of less than 0.5 percent, while the other apartment locations saw 0.1-0.5 percent quarterly improvements in value.

Villas in The Lakes saw values slightly improve by 0.6 percent, while Arabian Ranches, Jumeirah Islands, Al Furjan and Jumeirah Park saw marginal negative changes, ValuStrat said.

On rentals, overall residential asking rents declined by 4.9 percent year-on-year. Median asking rents in the second quarter were 1.3 percent higher than the fourth quarter in 2015 and 2.8 percent higher than Q1 this year.

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