Asteco reveals 11% drop in Dubai property prices

 

Asteco released a Dubai real estate report that unveiled a significant drop in property prices in 2015 with affordable communities leading the way in rental demand and investor opportunity.

The revealed residential sales recorded across-the-board declined, with villa sales prices down year-on-year by 11% and apartments by 8%. Villas on Palm Jumeirah recorded price declines of 13% over the year, dropping to AED2,475 per sq.ft on average and The Meadows was also down 15% to AED1,150.

Villa rentals were down 9% on average year-on-year, except for Al Barsha and Mirdiff which recorded an increase.

The biggest falls came in Jumeirah and Umm Suqeim where three-bed villas dropped more than AED50,000 or 20% on average to hit AED195,000, while larger four-bedroom homes in Arabian Ranches and Jumeirah Park were also down 19% to AED243,000 and 15.5% to AED145,000 respectively.

End-users, rather than investors, were the predominant buyers of villas and townhouses, with a clear preference for smaller two, three and four bedroom units, rather than large villas.

New communities such as Mudon and Arabian Ranches Phase 2 saw improved levels of activity, offering better-priced yet good quality alternatives to some of the more established areas.

 

For more details, please visit www.asteco.com

A copy of the full Asteco report can be found at http://www.asteco.com/valuation-advisory/overview/