Revealed: Where Dubai property rents, prices decreased the most in H1 2018

Dubai’s residential property market continued to experience sales price and rental declines in the first half of 2018, according to listings site Bayut.

The company said in a report that apartment rentals saw some of the steepest falls of all sectors compared to the second half of 2017.

Rents for one-bed apartments in Deira were down 15.38 per cent and those for two-beds in Dubai Sports City 10.59 per cent, while other decreases ranged from 2-9 per cent.

In the most popular area, Dubai Marina, the average cost of renting a one-bed was Dhs87,000 ($23,686).

Most popular areas for renting apartments
Source: Bayut Dubai real estate market report (figures H1 2018 compared to H2 2017)

In the apartment sales market prices were down around 5 per cent for one- and two-beds, Bayut said.

Most popular areas for buying apartments
Source: Bayut Dubai real estate market report (figures H1 2018 compared to H2 2017)

For villas, sales prices also fell with the exception of The Villa, where five-beds remained stable at Dhs4m ($1.089m) and Jumeirah Village Circle, where two-beds averaged Dhs2.4m ($653,400).

Most popular areas for renting villas
Source: Bayut Dubai real estate market report (figures H1 2018 compared to H2 2017)

The most popular villa rental area was Midrif, where a three-bed averaged Dhs120,000 ($32,670) a year, and the most popular sales area was Arabian Ranches, where the price for a three-bed villa fell 6.25 per cent to average Dhs3m ($816,750).

Most popular areas for buying villas
Source: Bayut Dubai real estate market report (figures H1 2018 compared to H2 2017)

“The average property price decreases in Dubai from H2 2017 are in line with what we foresaw last year,” said Bayut CEO Haider Ali Khan.

“We are seeing that renters and buyers are still firmly in the driving seat, with renters likely to bargain with landlords to negotiate a lower rent, or upgrade by moving to a larger property or a new area. The decreases in sales prices open up opportunities for buyers too.”

He forecast that the third quarter could see more first-time buyers enter the market.

“As we move into the later half of the year, we expect the prices to hover around where they are right now and for the serious parties, there will be great opportunities to invest at good price points.”

Credit ratings agency S&P said in a February report that it expected Dubai’s real estate slump to continue for another two years.

Read: Dubai real estate slump to continue for another two years – S&P