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New research shows average sales prices and rents softened across most communities in the UAE during Q3
A prolonged softening in prices and rents has made the UAE property market more accessible as homes become affordable to more people, according to a new report.
Cavendish Maxwell’s UAE Property Market Report for Q3 2019 showed that average sales prices and rents softened across most communities in Dubai.
Average apartment prices declined by 16.5 percent over the 12-month period from Q3 2018 while average villa/townhouse prices declined 15 percent during the same period.
Rental declines for apartments in Dubai averaged 15 percent, while villas/townhouses registered a 12 percent fall compared to Q3 2018.
Price declines in Abu Dhabi were slightly less steep than Dubai, averaging 15 percent for apartments and 12.7 percent for villas/townhouses during the same period.
The average annual rental decline for both apartments and villas/townhouses was 13.7 percent in the UAE capital, the report said.
The report added that the Northern Emirates continued to be impacted by falling rentals and sales prices in Dubai and Abu Dhabi.
Supply remained the primary driver for price declines with developers attempting to entice buyers with attractive payment plans, Cavendish Maxwell said.
It said office rents continued their decline into the third quarter across the UAE with landlords settling on lower effective rates and providing incentives. In Q3, businesses have continued to restructure their operations and limit exposure to real estate by consolidating multiple offices spaces into one.
The report noted that the office market in the UAE capital saw rents decline 2-3 percent on a quarterly basis on muted interest from the oil and gas sector which is one of the bigger tenants.
The report said: “A prolonged softening in prices and rents has made real estate more accessible to and affordable for owner occupiers and tenants. Supply continues to provide direction to prices and rents in Dubai and will do so as more projects materialise in the upcoming quarters.
“However, with the establishment of the real estate planning committee by His Highness Sheikh Mohammed bin Rashid Al Maktoum, a balance between demand and supply is expected to be achieved, improving projects’ value proposition and boosting confidence in the sector. The positive impact of the move is already evident with real estate transactions in Dubai more than doubling since the announcement of the committee.”
This article was published on
Arabian Business:
https://www.arabianbusiness.com/news/430677-dubai-v-abu-dhabi-where-are-property-prices-rents-falling-faster
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ACCEPTxSiddhi Sainani
Content and Communications Manager
Siddhi Sainani is a business and finance writer and a public relations professional with experience across markets in the UAE, Oman, India and the United States.
At Cavendish Maxwell, Siddhi is responsible for crafting research and marketing communications material for the firm’s various stakeholders including clients and government entities. She also leads the public relations activities for the firm, focusing on media outreach, reputation management and spokesperson profiling.
In her previous roles, Siddhi has reported on the financial markets for news outlets, developed institutional research for several institutions, and undertaken corporate communications initiatives for leading firms across sectors such as real estate, finance, banking, audit and advisory, and technology, among others.
Siddhi has a Bachelor of Mass Media degree with a specialisation in journalism and also holds a Post-Graduate Diploma in Integrated Communications covering advertising, marketing and public relations from Xavier Institute of Communications, Mumbai, India.
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Sarah-Jane Carter
BA (Hons) DipM
Head of Marketing
Sarah-Jane joined Cavendish Maxwell in January 2020 as Head of Marketing and is responsible for the development of the marketing strategy and execution across the Middle East region. An energetic and results driven marketer, Sarah-Jane possesses a wealth of multi-channel marketing experience, within both B2B and B2C environments which she has gained over a 25 year career. Prior to joining Cavendish Maxwell, Sarah-Jane held senior marketing positions for major developers in Dubai including Emaar, Dubai Properties and Dubai Sports City. She also worked for IWG as the Regional Marketing Director responsible for the MEA and APAC regions. Before relocating to the UAE in 2005, Sarah-Jane held various management roles in public and private sector companies in the UK including ten years at Royal Mail and seven years at the Bank of America.
Sarah-Jane is a member of the Chartered Institute of Marketing and has a BA(Hons) Degree in Business and Marketing
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