Dubai's April residential prices stable

Reidin, the leading real estate information company focusing on emerging markets, has today released its April property price index for Dubai.

The drop in price we have seen over the last  6 to 12 months seems to have come to some sort of standstill. Indeed, when compared to the month of March, April overall has decreased by a mere 0.02%. And when comparing to the same period last year, prices have actually increased by 0.28%.

When looking on a more granular level, we see that apartment sales prices registered a 0.13% decrease versus March but have however increased year on year by 0.51%

Looking at villas, it is the other way round with a 0.44% increase month on month while prices have dropped by 0.66% when compared to April 2016.

As a consequence, average gross rental yield for Dubai has now gone up to 7.2%. Going down a level, apartments are now generating 7.6% rental return while villas yield a return of 5.5%.

There is more and more confidence in the market and it is reflected by the increased number of transactions recorded by Dubai Land Department. When looking at the last 3 months, there has been 4,695 transactions for a total sum of AED 14.19 billion. Looking at the previous 3 months, the transactions were going at 4,360 for a sum of AED 12.84 billion. This represents a 7.68% increase in terms of transactions and 10.51% hike in terms of transaction value.

These are really positive indicators and confirm previous forecasts that predicted a market recovery towards the second half of 2017. However there is still a lot to go on before reaching the highs of 2014. But with numerous projects coming to completion between now and the next 3 years, the Expo 2020, all signs point to a swift recovery.

Should you need more info about Dubai's real estate market, do not hesitate to contact me.

Engel & Völkers

Real estate agent Ludovic Mapessa BRN: 36641
Nakheel Sales Center, Building 7, Al Sufouh 1
PO Box 17722 Dubai
United Arab Emirates
Phone
+971 50 115 4902

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