Dubai property owners are not happy (but renters are)
Dubai property owners are not happy (but renters are)
Global oil prices are making themselves known in Emirati real estate
Dubai’s apartment market continues to make quarterly slides alongside the global oil price slump, data from UAE-based property portal Bayut.com recently showed.
Average apartment rents in the emirate stood at AED125,000 (USD34,000) per annum in Q3 2016, compared with AED 128,000 in the second quarter, a 2 percent decrease.
One-bed apartment rents suffered the greatest drop among all bed categories, with average prices decreasing 8 percent from AED100,000 (USD27,200) in the second quarter to AED92,000 (USD25,000) in the third quarter.
Average prices for studio rentals slumped 2 percent between the second and third quarters from AED56,000 (USD15,200) to AED 55,000 (USD14,900).
More: Abu Dhabi rents spike, Dubai rents drop
Bayut.com noted that the average rent of two-bed and three-bed units registered a 1 percent drop in average rent. Similarly, the average rent for apartments with four beds and more fell 1 percent.
To some local property developers however, the emirate’s property market is in its bottoming-out phase. “I think the worst is over,” Nakheel PJSC Chairman Ali Rashid Lootah told Bloomberg recently. “Dubai is growing, we are seeing signs of more inquiries – serious inquiries – and I think that’s a sign of recovery. The market is maturing, we are seeing more serious, cautious investors, not speculators.”
The first seven months of 2016 saw a 30-percent slash on real estate sales values in Dubai, according to the Dubai Land Department.
Read next: Dubai: 4 things we know so far about its slumping market
Source: Property Report