Further drop in residential sale prices in Dubai is expected

There are speculations that, there will be a decrease in the sale prices in residential areas in Dubai. This speculation is as a result of a fluctuation in rent prices in different locations and this is not putting tenants at ease.
According to reports given by Deloitte on Dubai realty,” rental decrease could be aggravated if uncertain investors are unable to sell their houses for a moderate prices but instead decide to ransom units for rent.”
However for that to take place in a valid way, the exchange of completed properties should be done at a steady level that should increase a score or two. But things will not fall in place at least in the short run, if investors try to follow the current trend.
According to reports “discussions with fundamental investors suggests that a more practical figure for handovers will be approximately 10,000 units for this year.”
The Managing Director, Deloitte Corporate Finance Limited, Middle East, Robin Williamson stated that “our real estate advisory team gave out a Real Estate Predictions Report in January 2016, which indicated the directions and probabilities for Dubai’s real estate market. Now that we have move to the second stage in 2016, we have differentiated the predictions that we made for Dubai’s residential, hospitality, office and retail markets with authentic directions in the first stage of 2016.”
According to reports, a drop in Dubai’s residential sale prices was expected to occur in 2016 as predicted by Deloitte, indicating a move to a more mature market, as well as an increase in moderate stock and discounting in new locations.
Statistics from January to August of 2016 indicates that residential sale prices have continue to experience a drop in Dubai. Prices for Palm Jumeirah dropped by 3.8% between January 2016 and June 2016, prices for Downtown units dropped by 1.8% during the same period. The overall year on year statistic indicates that residential sales prices in Dubai dropped by 3.8% between June 2015 and June 2016.

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