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DUBAI REAL ESTATE MARKET–H1 2019

DUBAI REAL ESTATE MARKET–H1 2019

Haitham Sadek 0 Comments

Propertyfinder.ae has just released the sixth edition of “Trends” magazine. This edition included extremely useful information for everyone interested in UAE Real Estate market including many of Wealth Heights’s members.

Therefore, I thought of summarizing the key highlights focusing on Dubai. As always, please send any question to info@wealthheights.com

  1. With few exceptions, UAE property prices, both in sale and rent, fell further in H1 2019, continuing a downward trend that has now run for five full years. The rate of decline slowed in most segments, levelled in some instances, and most encouraging were the modest increases seen in the capital.
  2. Continued price declines can be attributed in large part to the amount
    of supply entering the market as 2018 saw the overall completion of 33,363 residential units. Further reasons for price declines could be attributed
    to the number of families who may be moving back to their home countries, or alternative destinations. Of the families moving into Dubai, their affordability levels may not be the same as previous residents.
  3. In the last two years, rent for apartments and villas in Dubai declined by 21% and 13.8% respectively while sale price for apartments and villas dropped by 11.7% and 12.1% respectively.
  4. Apartments rent in the popular areas of Marina, downtown Dubai, Palm and JLT declined by 16.5%, 12.7%, 14.2% and 22.5% respectively while sale price in the same areas declined by 18.6%, 12.7%, 7.1% and 17.4% for the last 24 months.
  5. Villas rent in Arabian Ranches, Meadows, the lakes, the springs and Victory heights declined by 2.4%, 29.5%, 4.4%, 13.6% and 20.1% respectively while sales in these areas dropped by 15.6%, 13.5%, 13.1%, 17.9% and 16.2% respectively in the last two years.
  6. Villas were the standout performer in the Dubai sales transactions market in H1 2019, with deals up 35 percent compared to H1 2018. Off-plan villa transactions accounted for the majority of these deals, with new launches such as Emaar’s Arabian Ranches 3 and Cherrywoods by Meraas receiving a lot of interest. For the overall market, off-plan still trumped secondary sales, as a result of the flexible payment plans and generous developer incentives.
  7. UAE property continues to offer world-leading rental yields. Despite falling rents, demand is high owing to the expat-heavy resident base who primarily choose to rent. Dubai Silicon Oasis apartments offered the best gross rental yields in Dubai at 9.5 percent whereas for villas/ townhouses, Town Square leads with 7.8 percent gross yields. Apartments in Marina, downtown Dubai, Palm and JLT offered gross yields of 6.2%, 4.7%, 4.2% and 6.7% respectively while Villas in Arabian Ranches, Meadows, the lakes, the springs and Victory heights had gross yields of 5%, 4.9%, 5.7%, 6.6% and 5.3% respectively.
  8. Top searched communities in Dubai are Dubai Marina, Downtown Dubai, Palm Jumeriah, Business Bay and Arabian Ranches

In summary, despite the current decline in both prices and rents, Dubai will always be an attractive destination for people from around the world. You need to do your homework and increase your understanding of the market and the Real estate investment in general. I added below the links to two important real estate articles with important fundamentals of the real estate investment which are essential to understand before considering purchasing any property.

As always, please don’t hesitate to send me any question to info@wealthheights.com. I’m here to help you.

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Best regards

Haitham

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