Dubai – Mubasher: Property prices have been falling in Dubai due to a slew of factors including oversupply and the sluggish population growth, along with the complex macroeconomic situation.
Apartments’ and villas’ prices dropped 5% quarter-on-quarter in the Emirate, their lowest level since 2014, while average rents of these residents declined 2%, according to a report conducted by Chestertons MENA, an international property company.
“As a result of falling sales prices, many end users took advantage of the increased affordability of completed units, as evidenced by the 10% increase in recorded transactions from the previous quarter,” head of Consulting and Valuations and Advisory Operations Ivana Gazivoda Vucinic commented.
At Business Bay and Silicon Oasis, apartment prices dipped 9%, registering AED 1,178 per square foot, compared to AED 729, while prices in Dubai Sports City, Jumeriah Village Circle, and The Greens plunged 8%, the report found.
“The number of new launches dropped during the quarter, which appears to be a strategic decision by developers in a bid to stave off empty units or sales at reduced-price points,” Vucinic said.
