The latest data shows that the decline in Dubai’s property values,which has been there since 2014, would finally come to an end. As a matter of fact, there has been price gains (even though it remains marginal) within the mid-market freehold clusters in the city.
The latest Reidin GCP data shows that high end locations, which were traditionally favored by investors and had the sharpest decline in the past 24 months, are either managed to lower the rate of decline appreciably or showing price stability in recent transactions.
During the past years, apartment values in Dubai were down by 0.5% and villas was about 0.5% higher.
The real estate sector and activity levels within could be the silver lining that the local economy needs. Also, the popular communities (such as Springs, Meadows, Discovery Gardens and Sports city) are expected to be in a positive territory on a year-to-year basis.
Clusters such as Dubai Marina and Palm Jumeirah are facing a drop and the year-to-year drop is now 431% and at the Palm it is about 4.9%.
The latest data shows that buyers are expected to wait for a while before starting transactions. Delaying would enable them to have a clear picture of the risk involved with seeking property.
“The rise in values is predominantly mortgage-driven. Transactions are rising not only in the mid-end but also at the higher end. The high-end cluster price drops have moderated quite a bit” said Sameer Lakhani (Managing Director of Global Capital Partners).