Saturday, July 8, 2017

Dubai freehold properties sales prices down

Further weakening in prices across the freehold neighbourhoods in Dubai, UAE, extended gloom in Abu Dhabi worsening yields for buy-to-let investors as declines in rental values outpaced those in the sales market, according to a report.

Yet amid the grim numbers, there are signs of recovery, with brokers reporting a bullish first quarter of 2017, stated leading UAE real estate portal, Propertyfinder in its UAE Real Estate Trends 2017 report.

For sales, Downtown Dubai remained the most expensive area where one could buy aprtaments at Dh2,182 per sq ft, despite a 6.7 per cent price decline, the largest drop in the apartment sector, stated leading UAE real estate portal, said the report.

Price changes seem to have little connection to overall prices, with some of Dubai’s cheaper areas such as Dubailand (-3.5 per cent) and IMPZ (-3.6 per cent) also suffering some of the biggest falls, it noted.

Propertyfinder said its search data provides an unparalleled and up-to-the-minute snapshot of the UAE’s real estate sector, accounting for 62 per cent of all UAE visits to property portals.

Covering the six-month period from September 2016 to March 2017 inclusive, Propertyfinder analysed the apartment market in 23 Dubai neighbourhoods; sales prices fell in 17 districts and rental values in 21. The portal also achieved a 40 per cent rise in page views which rose to 14 million in March versus a year earlier.

According to the UAE portal, six districts including Sports City (+1.6 per cent), Jumeirah Village Circle (JVC) (+4.1 per cent), Greens (+0.1 per cent) and Al Furjan (+0.7 per cent) bucked the negative trend though they appear to have little in common.

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."

"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 $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," he noted.

The Emirati portal said Dubai apartment rental values fell by a greater margin than sales prices in most areas. This suggests landlords have proved more willing to cut their asking prices than those wishing to sell, and points to ebbing demand and over-supply.

These trends, led rental yields for buy-to-let investors to fall in most neighbourhoods, although they remain attractive by international standards, ranging from 5.2 per cent on Palm Jumeirah to 9.5 per cent in Discovery Gardens for apartments and 3.1 per cent in Emirates Hills to 6.5 per cent in JVC for villas.

In Abu Dhabi, villa sales prices fell in six of eight districts, including an 11.8 per cent plunge in Al Raha Gardens, while villa rentals along with apartment sales and rentals were also predominantly in retreat.

“Rents continue to decline in Abu Dhabi where a reduction in government spending in direct correlation to sluggish oil prices has reduced employment and demand for housing in the capital,” the report added.-TradeArabia News Service



from Construction Realestate


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