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Dubai property prices fall faster, Abu Dhabi holds on

Dubai property prices are falling at increased speed. The Dubai Residential Property Sales Price Index for all residential estates decreased by 2.6 points, from 248.7 to 246.1, which represents a decline of 1.05 per cent in March 2018, according to the latest REID report. Prices also went down by 4.76 per cent year on year. Apartment sales prices registered a decrease in March 2018 with a drop of 1.04 per cent month on month, and 4.70 per cent year on year. Dubai Villa Sales Prices also dropped 1.10 per cent month on month and 5.02 per cent year on year.

The Dubai Residential Property Rental Price Index for all residential estates decreased by 0.4 points, from 88.1 to 87.7, which represents a decrease of 0.40 per cent in March 2018 and 7.75 per cent decline year on year. Apartment rental prices registered a decrease in March 2018 with a 0.43 per cent drop month on month and a 7.31 per cent decline year on year. Villa rental prices registered a decrease in March 2018. Prices decreased 0.19 per cent month on month and 10.15 per cent year on year.

“Last year, the real estate sales market was dominated by off-plan sales. However, this year sales activity in the secondary market is gaining momentum. This trend is expected to continue and also affordable housing has become prime choice as it offers a healthy anticipated return on investment thanks to the growing demand from tenants and the population of the UAE,” said REIDIN’s Operations & Research Director Ozan Demir.

But gross rental yields for Dubai increased when compared to the previous month.  Gross rental yield for all residential estates reached 7.0 per cent. While for apartments, the gross rental yield increased to 7.4 percent; the gross rental yield for villas stayed stable at 5.2%. Price-to-rent ratio for all residential real estates in Dubai registered another minimal decrease month on month and reached 14.8 years from last month’s 14.9 years. While price-to-rent ratio for villas dropped to 19.7 years from 19.9 years, apartments went down to 14.0 years from 14.1 years, month on month.

The Abu Dhabi Residential Property Sales Price Index for all residential estates decreased by 0.1 points, from 90.4 to 90.3, which represents a decrease of 0.19 per cent in March 2018 and a 7.23 per cent decrease year on year. Apartment sales prices registered a drop in March 2018 with a decrease of 0.10 per cent month on month and 8.51 per cent year on year. Villa sales prices also registered a decrease and declined 0.45 per cent month on month and 3.03 per cent year on year.

The Abu Dhabi Residential Property Rental Price Index for all residential decreased by 0.6 points, from 86.9 to 86.3, which represents a decrease of 0.74 per cent in March 2018. Prices decreased 10.38 per cent year on year. Apartment rental prices registered a 0.62 per cent month on month decrease and a 10.68 per cent year on year decrease. Villa rental prices decreased 1.16 per cent month on month and 9.25 per cent year on year.

Gross rental yields for Abu Dhabi decreased month on month except for apartments.  apartments remained stable at 7.3 for the third month in a row. However, gross rental yield for all residential estates and villas decreased from 7.0 per cent to 6.9 per cent, and from 6.0 per cent to 5.9 per cent, respectively. The price-to-rent ratios for all three categories increased by 0.1 points month on month. Price-to-rent ratio for all residential real estates in Abu Dhabi reached 14.9 years, while for villas and apartments, the price-to-rent ratio increased to 17.3 and 14.2 years, respectively.


Also published on Medium.