REIDIN.com reveals a slight fall of 0.14% in Dubai Villa prices during August 2010

August data reveals villa prices to have dropped a mere 0.14% compared to a drop of -1.19% during last month.

United Arab Emirates, Dubai: REIDIN.com, the leading real estate information company covering emerging markets, today announced the August 2010 Sales Price Index for Dubai (SPID), part of its INDEXFocus-UAE product, an online database of proprietary real estate indices for the UAE designed to accurately track price fluctuations in the residential real estate market.

REIDIN.com gathers data from a number of sources including transactions for certain districts and communities in Dubai including seven citywide Dubai indices and a total of 19 district and project-based indices – Business Bay, Downtown, Dubai Marina, Jumeirah Beach Residence, and The Greens, among others. This provides an accurate sampling of the larger Dubai housing market picture.

August 2010 witnessed a slight decline in prices of both apartments and villas in Dubai compared to the previous month. However on the bright side the villa prices are showing more stability as the August data reveals villa prices to have dropped a mere 0.14% compared to a drop of -1.19% during last month.

According to the data, the All Residential Sales Price Index (SPID – All Residential) showed a nominal decrease of 1.98% against July 2010. Apartments prices however, showed a marked fall, registering a 2.56% fall compared to July. However, the date also showed that the month-on-month prices for apartments above 151 sq. metre rose by a nominal 2.15% during August 2010.

Chart 1.1 Residential Price Appreciations: August 2010

Source: REIDIN.com

Prices in the ’50 sq. metre and less’ category were lower at 13.70% year-on-year in August 2010, whereas on a month-on-month basis, prices dropped by a nominal 0.12%.
In the 51-100 sq. metre segment, the average nominal price fell 1.07% year-on-year while on a month-on-month basis, prices spiked by a nominal 1.38% during August 2010.
In the 101-150 sq. metre segment, the average nominal price decreased 3.71% year-on-year in August 2010, while the month-on-month price fell by 1.43%.
Though year-on-year prices in the ‘151 sq. metre and above’ category were down by a nominal 5.74%, the month-on-month prices rose by a nominal 2.15% in August 2010.

Chart 1.2 Residential Price Appreciation: By Apartment Size August 2010
 
Source: REIDIN.com

The REIDIN.com SPID – All Residential dropped by 1.47 to touch 174.74 basis points in Q2 2010, a 0.84% fall against Q2 2009. While the apartment index declined by 5.23%, the index for villas showed a rise of 6.99% in Q2 2010 compared to Q2 2009.

Chart 1.3 Sales Price Index Dubai (January 2003 = 100)
 
Source: REIDIN.com

In August 2010, the REIDIN.com Residential Sales Price Index was a mere 64.45 points (64.45%) above its base value of 100 points in January 2003. At the same time, the REIDIN.com Apartment Sales Price Index was 46.89 points (46.89%) above and the REIDIN.com Villa Sales Price Index was 191.61 (191.61%) above their base value of 100 points in January 2003. The index rose to its peak to break the 400-barrier just before November 2008.

Chart 1.4 SPID – All Residential vs. Oil Index vs. Gold Index  
 
Source: REIDIN.com

In August 2010, the REIDIN.com SPID was 64.45% above its base value of 100 points in January 2003. The index for oil reached 144.43% higher and the gold index was 242.93% against their January 2003 base value of 100 points.

SPID are powered by raw transaction data made available exclusively through the REIDIN.com product: DUBAIFocus (Dubai real estate transaction database back to 1973 powered by an exclusive partnership with the Dubai Land Department) as well as property valuations and listings.

SPID a vital component of REIDIN.com’s INDEXFocus, a service dedicated to providing real estate indicies and other benchmark data. Sales Price Index for Dubai (SPID) is based on the actual transactions registered by Dubai Land Department (DLD) and property valuations and listings.The service provides the Dubai market with a series of indices and data sets that can help improve transparency across the market and help real estate professionals to benchmark and analyse residential price trends.