Dubai residential property prices drop 1.1% in Q2

Residential property prices in the Dubai real estate market showed a 1.1 per cent annual decline in the second quarter of 2016, according to ValuStrat’s Price Index.

The firm said its data indicated an early recovery was materialising in some areas, with a possible bottoming-out of property values during the course of the year.

Read: Has the UAE property market bottomed out?

The index stood at 98.0 points in April and May and dipped 0.1 per cent in June to 97.9 points.

More broadly the firm said prices had been relatively stable over the last 12 months and sentiment was “cautiously optimistic” towards a recovery commencing in the second half of 2016, despite warnings from other companies earlier in the year.

Read: Continued decline ‘likely’ for UAE real estate prices

“For the second quarter of 2016, Dubai Land Department transaction volumes for the VPI coverage areas witnessed quarterly increases of 14 per cent for apartments and 7 per cent for villas,” noted ValuStrat research manager Haider Tuaima.

The company said residential investments yields were up during the quarter, with rents up 1.3 per cent compared to Q4 2015 and 2.8 per cent compared to Q1 2016.

Around 16,326 apartment and villa units are expected to be completed this year, of which ValuStrat said just over half will be delivered.

The firm also noted a further 2,500 units launched during Q2, adding to the 2020 residential pipeline.