Cavendish Maxwell which is a property consultancy and chartered surveying firm, stated that average sales prices and rents softened across most communities in Dubai in the second quarter. But, compared to last year, the acerage rate of price decline has slowed with apartment prices falling 15.1 percent and villa/townhouse prices down 14.7 percent.
Off plan transfers continued to dominate in Dubai in second quarter of 2019, accounting for more than 52% of total transfers, said the expert in its latest UAE Property Market Report for second quarter of 2019, containing key data and trends for Dubai, Abu Dhabi and the Northern Emirates.
The report provides comprehensive insights on the health of the UAE’s property market as a whole, covering the residential, commercial, retail, hospitality and industrial sectors. It was compiled by the firm’s in house Strategic Consulting and Research team, drawing on proprietary data from its real estate intelligence platform, Property Monitor, and in collaboration with its extensive client and partner portfolio.
Maxwell, said: “The first half of the year remained challenging for the UAE property sector, as rents and prices continued to decline. Conditions remain conducive for tenants who are well-positioned to demand rent-free periods, fee waivers and flexible payment terms from property owners, and potentially upscale to bigger units which may have previously been beyond their reach.”
Aditi Hariharan, Senior Consultant, Strategic Consulting and Research at Cavendish, stated that whilst we have noticed a slower rate of price declines in some areas over the last 12 months, this is still contingent on new supply and actual materialisation rates, which have averaged 40-50% over the past few years.
She added that the government continues to introduce measures to stimulate the market, with Abu Dhabi recently opening up investment zones to expat property buyers for the first time.
The second quarter of 2019 UAE Property Market Report from Cavendish Maxwell revealed several key insights and trends during the quarter, which will likely continue into H2 2019.
Average sales prices and rents softened across most communities in Dubai in Q2 2019. However, over the 12-month period from Q2 2018, the average rate of price decline has slowed. Average apartment prices declined 15.1% and villa/townhouse prices declined by 14.7% in Q2 2019 from a year ago.
During the same period, rental declines for apartments in Dubai averaged 12.5% and villas/townhouses similarly registered a fall of 12.6%. Off-plan transfers continued to dominate in Q2 2019, accounting for more than 52% of total transfers.
In Abu Dhabi, average sales prices declined by 12.6% for apartments in major investment zones, from second quarter of 2018 to second quarter 2019. Villa/townhouse prices registered a similar average decline of 12.1% over the same period. Rents in Abu Dhabi continued to fall in Q2 2019, for both apartments and villas/townhouses.
Fulya Altunyay/[email protected]