UAE property market is likely to result in moderate 10-20 per cent correction by end of year
- Dubai rents drop by an average of 2 per cent this year
- Apartment and villa prices declined 7 and 11 per cent respectively
Dubais apartment and villa rental rates have dropped by an average of 2 per cent in 2015, according to a report published by local real estate firm Atesco.
The report goes on to say that sales have also contracted by an average of 2 per cent so far this year, with apartment and villa prices declining by 7 and 11 per cent respectively.
Meanwhile, apartment sales that performed well in the second quarter of this year were at the affordable end of the market. The report states that apartment sales in the second quarter were marked by a shift towards more affordable properties, with locations such as International Media Production Zone (IMPZ), Dubai Silicon Oasis, International City, and the recently handed over Queue Point and Sky Courts developments in Dubailand, witnessing sustained demand as yields for studio and one-bedroom apartments in particular remained attractive.
In June, US ratings agency Standard & Poors (S&P) released a statement as part of a report, saying additional supply with a dampening on demand in the UAE property market is likely to result in a moderate 10-20 per cent correction.
Despite this, S&P says this contraction is much less than what led to the Dubai crisis in 2009.
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