Dubai Property Prices Fell Slightly In Jan, Feb 2015 – Report

Property prices in Dubai dropped by an average of two per cent in January and February 2015 as compared to the last quarter of 2014, according to a new report released by real estate firm Tasweek.

Transactions also slowed by 20 per cent in January and 17 per cent in February compared to the same months in 2014, it found.

“This indicates consumer patience and growing confidence for the future,” the report stated.

Masood Al Awar, CEO, Tasweek, said: “Market movements were steady and deliberate across the UAE during the first quarter, with most developers adopting a ‘wait and see’ attitude that we expect to carry over in the coming couple of months.

“There are a lot of positive indicators for growth and new opportunities, though, such as the increasing popularity of the ‘smart living’ concept and the introduction of more affordable price ranges. We are optimistic that the local industry will post a strong performance this year.”

Specifically in the affordable segment, Dubai-based developer Nshama recently launched townhouses for sale priced less than Dhs1 million in its new Town Square development.

Town Square will comprise of over 3,000 townhouses ranging from 2,153 to 2,422 square feet per unit, 18,000 apartments, 350 shops, one Vida hotel, parks, healthcare facilities, schools, and cycling trails.

It is scheduled to be completed in 2017.

Overall, some of the lowest priced options in the market include: Dubai Silicon Oasis (Studio – Dhs493,000/ one-bedroom – Dhs694,000 / two-bedroom – Dhs1.025 million / three-bedroom – Dhs1.996 million); Discovery Gardens (Studio – Dhs555,000/ one-bedroom – Dhs690,000 / two-bedroom – Dhs1. 25 million / three-bedroom – Dhs1.8 million); and Sheikh Zayed Road (Studio – Dhs555,000/ one-bedroom – Dhs819,000 / two-bedroom – Dhs1. 136 million / three-bedroom – Dhs4.483 million).

In terms of rents, International City offers the lowest rental rates at Dhs38,000 for studio units and Dhs53,000, Dhs70,000 and Dhs100,000 for one, two and three bedroom apartments, respectively, the report stated.

Rents are also low in Dubai Silicon Oasis – Dhs47,000 for studio, and Dhs57,000, Dhs90,000 and Dhs133,000 for one, two and three bedroom apartments respectively, and in Discovery Gardens – Dhs59,000 for studio and Dhs76,000, Dhs104,000 and Dhs118,000 for one, two and three bedroom apartments respectively.

Dubai’s property market has stabilised since mid-2014, with prices and rents expected to remain flat or drop by up to 10 per cent this year, according to real estate consultancy JLL.

However, experts have also stated that the correction in the market is not steep, and that the emirate remains attractive to long-term real estate investors.