- Colliers
Houses prices in Dubai are cooling, and in some areas, they are even falling, according to the latest quarterly report from Colliers International.
Average house prices were up 3% across Dubai in the second quarter, compared with the first three months of the year, and are still up 20% on a year-on-year basis. But average villa prices actually fell slightly from AED1,480 per square foot to AED1,474, according to Colliers in the second quarter, while brokers have also reported a similar trend in August.
Here are some of the key points from the Colliers report:
– Average residential real estate in Dubai cost AED1,512 per square foot at the end of the second quarter across villas, apartments and townhouses. That’s up about 3% on the first quarter and 20% on the same period last year.
– Apartments made up about 67% of the transactions in the market across Dubai in the second quarter, while villas made up 23% and townhouses 10%.
– Dubai Marina, Downtown Dubai, Jumeirah Lakes Towers and Motor City were the most popular areas in the second quarter.
–Apartment prices on the Palm Jumeirah development increased 58% year-on-year.
– Increasing rents are causing tenants to relocate, which has attracted investors to new areas like Dubai Sports City, Motor City and Dubai Silicon Oasis.
– Some 38,275 residential units are expected in Dubai before the end of 2017, increasing supply by 8.8%.
– A residential unit has generated returns of 70% since 2007 in Dubai, according to Colliers, compared to a return on the Dubai Financial Market of 30% since then.
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(via WSJ Blogs)
