The slump in Dubai’s residential and commercial property markets continued in the second quarter of the year but gave some hope of a recovery as rates of decline slowed.
According to Cluttons’ Dubai Market Report, apartment rental values fell between 3.5 per cent and ten per cent on figures from the first quarter of the year.
In selected areas, the residential market has even demonstrated modest growth: according to the report, Palm Jumeirah, the Burj District and Dubai Marina all performed robustly.
The high-end villa market has proved to be more resilient and has counteracted predictions that prices would soften over the past quarter – in fact in some areas, rents have increased by between 1.5 per cent and three per cent.
However, Cluttons said it expected the summer months were likely to bring resistance to any growth in all sectors.
Steve Morgan, head of Cluttons UAE, said: “The residential market has matured significantly over the last three years into a market that recognises location, quality and neighbourhood as features that increase value.
“With this in mind, certain areas of the city and or developments are showing signs that the bottom of the market has come and maybe gone. Demand is up on properties that offer lifestyle and convenience in developments that are finished and provide the amenities that are required in the nearby areas.”
Morgan also sounded a note of caution about unfinished housing developments in locations that don’t offer the services that occupiers are looking for.
“These locations are likely to continue to see decreased demand and softening rental and freehold prices,” he said.
Follow @AboutUs on Twitter and subscribe to our free weekly newsletter.
