18 November 2016

Dubai – Don’t be Down

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A closer examination of price trends reveals that from its apartment peak prices are still down 13%, whereas city-wide villas are down 11%. However, if you measure price change from its lows, we can witness an uptick in apartment price action by 1.3% and villas by 1.6%. A granular analysis of communities reveals that most have rebounded from their lows except for some of the high-end apartment areas such as Dubai Marina, Palm Jumeirah and Downtown. In fact, from the start of the year a few communities such as JLT, Sports City and Springs have inched higher.

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Transactional activity analysis reveals that from the peak the number of transactions is down by 60% from the peak. However, from the start of the year activity is up 15% (Jan 2016 vs Oct 2016), while from its lows it has rebounded by 25% (Jul 2016 vs Oct 2016). We opine that part of the reason why transactional activity has reduced has been due to the rising incidence of mortgages.

A closer look into rental changes within areas reveals that several communities have had been a slight rebound from their lows implying that a bottoming out could be on the horizon for the entire market.

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