Dubai property prices likely to ‘stabilise’ in 2019

By Angel Chan

DUBAI 24 December 2018: The new visa reforms are expected to boost the sales of properties in 2019 and heralds the possibility of prices stabilising across the emirate which will further strengthen the position of
Dubai as one of the leading emirates to invest in, according to a new research.

“Dubai has followed a similar trend as seen in our H1 and Q3 Market Report, with property prices falling across its most popular areas. This year has definitely been a big one for the Dubai property market due to announcements of the new retirement visa along with the 10-year residency visa and 100% foreign company ownership, explained Haider Ali Khan, CEO of Bayut.

The average prices for buying and selling property in the Dubai real estate market have shown modest decreases, according to the H2 2018 real estate market report by Bayut.com.

Sales Highlights:

● Dubai Marina remains on the top position for apartment sales with Marina Diamonds being the most searched building in the area. Arabian Ranches is the most popular for villa sales with Al Reem being the most searched sub-community.
● For apartments, the most significant price changes is a 12.9% decrease for studios in International City from Dh310k in H1 to Dh270k now.
● For villas, there were expected changes of 12.1% decrease for 5-beds in Damac Hills (Akoya by Damac) from Dh5.17M to Dh4.54M.

Rental Highlights:

● Al Nahda takes the top spot for the most popular area for apartment rentals, pushing Dubai Marina , our usual winner marginally into second place, with Al Nahda 2 receiving the highest number of searches within the area. Mirdif takes the first rank for villa rentals with Uptown Mirdif being the most searched sub-community.
● The most noticeable decreases for apartment rentals are for studios in Bur Dubai where prices fell by a substantial 13% and average at Dh40k from Dh46k. Prices for studios in Discovery Gardens decreased by 12.5% where prices are now Dh35k from Dh40k.
● For villa rentals, the most noticeable price change is a 9.5% decrease for 4-bedroom its in Jumeirah from Dh210k to Dh190k.

Apartment Sales

Prices for apartments in Dubai Marina remain more or less stable compared to those seen in H1 and Q3, with the average prices standing at Dh850k for studios, Dh1.19M for 1-bed and Dh.95M for 2-beds. All other areas show a 2 to 9% decline in average sales prices with the exception of Downtown Dubai where prices remain unchanged at Dh1.03M for studios, Dh1.6M for 1-beds and Dh2.95M for 2-bed apartments.

Apartment Rentals

This time, Al Nahda takes the crown for the most popular area for apartment rentals in Dubai, with 1-bedroom apartments showing the steepest decline of 10.4% with prices averaging at Dh34k, down from Dh48k in H1 of 2018. 2-bedroom apartments averaged at Dh58k, down from Dh60k, and studios at Dh35k, down from Dh38k.

The favoured Dubai Marina came in at a close second after a tough competition with Al Nahda and the change in position can possibly be credited to the increased interest for investment in the area, after the introduction of the new laws, which have encouraged people to consider buying and living in Dubai Marina rather than leasing. This is further evidenced by the fact that sales searches in Dubai Marina have gone up and it was, and still is number 1 when it comes to investing in an apartment in H2 2018.

Average prices for studios in the other popular areas such as International City, Dubai Silicon Oasis and Dubai Sports City decreased by 10%.

Most other decreases are between 3 to 9%, with prices for studios in Jumeirah Village Circle (JVC) and Deira remaining more or less stable at Dh39k and Dh32k respectively.

Villa Sales

The average prices for the villas in Arabian Ranches have decreased by 6 to 7%, with prices going down from Dh3.05M in H1 to Dh2.8M for 3-beds in H2 2018, 4-bedroom villas went down from Dh4.1m to Dh3.8M and 5-bedroom villas went down from Dh5.2 to Dh4.79M.

The next noticeable price changes are for the 4 and 5-bedroom villas in Dubailand, where the average sales price have fallen from Dh2.45M to Dh2.12M, and Dh2.28M from Dh3.5M respectively. The price changes in Dubailand can be attributed to the delivery of newly finished off-plan projects.

The 3 and 4-bed villas in the Springs remain unchanged at Dh2.4M and Dh2.9M, respectively. 5-bed villas in JVC also remain unchanged at Dh4M. All other increases and decreases arewithin 5%.

Prices for 5-bed villas in Palm Jumeirah also remain stable at Dh14.5M. However, for those looking for fully-furnished or luxury villas, will find them at a higher price starting from Dh24M in the Signature Villas and The Crescent sub-communities of Palm Jumeirah.

All other increases and decreases are within 5%.

Villa Rentals

The rental cost for properties in Mirdif is largely unchanged, with an exception of 3-bedroom units, where the prices increased by 4.3% and now average at Dh120k from Dh115k in H1. The steepest fall in rents can be seen for 3 and 4-bedroom villas in Jumeirah , where rents went down to Dh165k from Dh180k and Dh190k from Dh210k, respectively. Average rents forthe villas in Dubailand remain unchanged from H1 for 2018 at Dh155, 165k and 160k

Most popular villa sub-communities

Al Reem is the most popular sub-community in Arabian Ranches for buyers, accounting for more than 42% of searches conducted within the area, while Living Legends has the most searches overall for villa rentals in Dubailand at 48% . Signature Villas (47.7%) is the next most popular sub-community for villa sales in Palm Jumeirah.

For villa rentals, Uptown Mirdif is the most popular choice gathering the lion’s share of 79.5% of total searches conducted in Mirdif . Other popular villa communities for leasing include Garden Homes in Palm Jumeirah with 65.5% of the total searches done within the area, Legacy in Jumeirah Park which raked in 59.3% of the total searches in the area, and Jumeirah 1 in Jumeirah brought in over 50.7% of the total searches in the locality.

Popular off-plan projects

Mohammed Bin Rashid City, Akoya Oxygen, JVC, Business Bay and JLT received the most attention by potential investors and are the most popular locations for off-plan investments in Dubai in 2018.

Within MBR City, the District 7 project is the most searched for at 34% and in Akoya Oxygen the top spot went to Sahara Villas, which accounted for 25.6% of the searches.

Disclaimer: The above report is based on prices advertised by real estate agencies on behalf of their clients on Bayut.com, and not representative of actual real estate transactions conducted in Dubai.



Dubai Gazette