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.
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