Dubai home prices soften by 9.2%, worst-hit areas are…

By Eudore R. Chand

DUBAI 20 February 2019: The Dubai House Price Index for January 2019 shows that annual house price growth softened by 9.2% in January 2019, with prices declining 1.7% month-on-month.

House prices in the three months to January were 4.2% lower than in the previous quarter. The average house price in Dubai decreased to Dh2.69 million.

The index, from Cavendish Maxwell, has been tracking the prices of a selection of apartments and villas/townhouses since September 2015.

Worst-hit Communities

The annual decline in prices was more pronounced in communities such as Arabian Ranches, Emirates Living, International Media Production Zone (IMPZ) and Dubai Sports City, where prices declined by more than 10% on average.

Off-plan apartment transfers continued to dominate in January 2019, as has been the case over the past 12 months. However, the volume of transfers was lower than in January 2018. Since the beginning of 2019, transfers of apartments and villas/townhouses decreased by 42% compared to the same period last year.

Average Prices

According to January’s House Price Index, the average apartment was Dh1.8 million and the average villa/townhouse price was Dh4.7 million, down significantly from Dh2.1 million and Dh5.6 million, respectively, for the same properties tracked since September 2015.

The Dubai House Price Index is produced by Property Monitor, a product of Cavendish Maxwell – one of the UAE’s leading property consultancies – and was developed in response to a need for greater market transparency.