Dubai property prices down 6.8% in November – Cavendish Maxwell

Dubai residential property were down 6.8 per cent year-on-year in November, according to an analysis by property consultancy Cavendish Maxwell.

The firm said prices were down 1.4 per cent from October pushing the average house price to Dhs2.78m ($756,841).

House prices in the three months to November were down 4.4 per cent year-on-year.

Cavendish said secondary market sales outpaced off-plan activity in the villa market but off-plan continued to dominate the apartment segment.

Off-plan apartment sales were down 17 per cent.

The average price for an apartment has declined 12 per cent and villa/townhouse 14 per cent since September 2015, the firm said.

Rates have declined from Dhs2.1m to Dhs1.9m for the former and Dhs5.6m to Dhs4.8m for the latter.

The Dubai property market has been hit by rent and sales price decreases in recent years linked to limited demand and new supply.

The UAE Central Bank said earlier this month that Dubai property prices fell 7.4 per cent year-on-year in the third quarter.

Read: Dubai property prices down 7.4% in Q3 as UAE job growth slows – central bank

Another consultancy, Chestertons, said in October that it expected price declines to continue for the next three to five years.

Read: Dubai property prices drop, market ‘equilibrium’ expected in three to five years