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Dubai real estate records further declines

According to the latest Reidin Residential Property Price Indices, the index for all residential estates decreased by 1.1 points, from 245.2 to 244.1, which represents a decline of 0.47 per cent in May 2018. Prices also went down by 5.77 per cent year on year. Apartment sales prices registered a decrease in May 2018 with a drop of 0.42 per cent month on month, and 5.53 per cent year on year. Dubai Villa Sales Prices also dropped 0.84 per cent month on month and 6.78 per cent year on year.

The Dubai Residential Property Rental Price Index for all residential estates decreased by 0.9 points, from 87.4 to 86.45 which represents a decrease of 1.02 per cent in May 2018 and 8.43 per cent decline year on year. Apartment rental prices registered a decrease in May 2018 with a 1.05 per cent drop month on month and a 7.93 per cent decline year on year. Villa rental prices registered a decrease in May 2018. Prices decreased 0.74 per cent month on month and 11.18 per cent year on year.

Gross rental yields for Dubai remained relatively steady when compared to the previous month.  Gross rental yield for all residential estates and apartments both went 0.1 point down and reached 6.9 per cent and 7.3 per cent respectively. Villas stayed stable at 5.2 per cent. Price-to-rent ratio for all residential real estates and apartments in Dubai increased 0.1 point and reached 14.9 and 14.1, respectively. While price-to-rent ratio for villas decreased to 19.7 years from 19.8 years, month on month.

The Abu Dhabi Residential Property Sales Price Index for all residential estates decreased by 0.4 points, from 90.5 to 90.1, which represents a decrease of 0.36 per cent in May 2018 and a 7.30 per cent decrease year on year. Apartment sales prices registered a decrease in May 2018 with a drop of 0.57 per cent month on month and a 8.37 per cent decrease year on year. Villa sales prices registered an increase and went up 0.32 per cent month on month and 3.86 per cent decrease year on year.

The Abu Dhabi Residential Property Rental Price Index for all residential decreased by 1.0 points, from 86.1 to 85.1, which represents a decrease of 1.18 per cent in May 2018. Prices decreased 10.88 per cent year on year. Apartment rental prices registered a 1.55 per cent month on month decrease and a 11.85 per cent year on year decrease. On the other hand, villa rental prices increased vaguely by 0.02 per cent month on month but decreased 7.24 per cent year on year.

Gross rental yields for Abu Dhabi stayed stable for all residential estates at 6.9 per cent month on month. Gross rental yields for apartments decreased from 7.2 to 7.1 per cent. Gross rental yield for villas stayed stable at 6.0 per cent. The price-to-rent ratio for all residential real estates in Abu Dhabi increased to 15 years. For villas, the price-to-rent ratio went up from 17.1 to 17.2 years, and for apartments, the price-to-rent ratio increased to 14.5 years from 14.3 years.

According to Residential Property Price Indices, apartment sales prices in Ajman registered a decrease in May 2018 with a drop of 1.93 per cent month on month, and 2.01 per cent year on year. Apartment sales prices in Ras Al Khaimah registered a decrease in May 2018 with a small drop of 0.27 per cent month on month and 2.17 per cent year on year. Sharjah apartment sales prices registered an increase in May 2018 by 1.28 per cent month on month and 3.87 per cent year on year.

Ajman apartment rent prices registered a decrease in May 2018. Prices decreased 1.84 per cent month on month and 7.06 per cent year on year. Ras Al Khaimah apartment rent prices registered a decrease in May 2018. Prices decreased 2.06 per cent month on month and 10.47 per cent year on year. Sharjah apartment rent prices registered a decrease in May 2018. Prices decreased by 2.04 per cent month on month and 6.46 per cent year on year.

Gross rental yield for apartments in Ajman stayed stable at 8.7 per cent when compared to the previous month. Gross rental yield for apartments in Sharjah decreased by 2 points and reached 5.3 per cent. In Ras Al Khaimah the yield decreased to 7.6 per cent. Price-to-rent ratio for apartments in Ajman did not change and remained steady at 12.0 years. While price-to-rent ratio for apartments in Sharjah registered a hike to 19.4 years from 18.7 years, month on month; the ratio for Ras Al Khaimah rose to 13.7 from 13.5 years.