The Two-Speed Market
The gulf in property values and rentals
had widened last year in the UAE,
especially Dubai which, of late, is showing
signs of narrowing. The latest trend is
the softening of the asking rents in many
micro markets of Dubai.
“As of Q4 last year, median asking rents
were 2.3% less than the quarter prior to
it, 5% less than Q4 2014 and 10.4% less
than the same period two years ago.
This can be explained by analysing at
the new supply coming online in some
locations, providing more options for
tenants, and by the long vacancy periods
some landlords initially opted for to
secure higher income, then realizing that
a slightly lower asking rent would reduce
the vacancy,” reasons Haider Tuaima, Head
of Research at ValuStrat.
April 2016 | www.wealth-monitor.com
A recent report
How Average 2BR Apartment Rentals
by Emirates
Have Moved Across UAE Since 2008
NBD ‘Dubai Real
Estate Update:
250
Feb 2016’ also
200
confirms that the
pace of the price
150
decline in Dubai’s
residential sector
100
is stabilizing
50
in Feb 2016.
Residential
0
property prices
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
have remained
2008
2009
2010
2011
2012
2013
2014
2015
relatively
Dubai
Abu Dhabi
Al Ain
Ajman
Fujairah
unchanged in
Sharjah New
Ras Al Khaimah New
Umm Al Quwain
February 2016
The luxury (premium) segment in the
with apartment
villas sector was more resilient at -9.1%
prices down -12.1% y/y and villa prices
y/y while the standard segment of the
down -10.9% y/y, according to Phidar
apartments sector also softened at -7.6%
Advisory’s Dubai 9/5 House Price
y/y in February 2016. The strength of
Index, which is based on Dubai Land
Department (DLD) data but includes only
the US Dollar is a constraint on demand,
nine apartment comm [