Declines in residential prices and rents continue in Dubai in 2019 due to increasing supply.
Average sales prices for residential property in Dubai declined by approximately 7% between Q3 2018 and Q3 2019. Average rents also declined by approximately 9% over the same period, as the average price per sq ft for apartments fell from AED 1,178 in 2018 to AED 1,090 as at September 2019.
Cost conscious residents have a wide range of projects to choose from and landlords are providing increased incentives for tenants, including rent free periods and favorable payment structures.
Despite the continuing decline in prices, project handovers in Dubai continue in the lead up to Expo 2020. Based on consultations with key industry stakeholders, it is estimated that a total of 18,500 to 19,000 residential units were handed over in the first nine months of 2019.
The formation of the Higher Committee for Real Estate in September 2019 is aimed at mitigating the imbalance in supply and demand through ‘a strategy to add value to real estate projects’. Details of the plan have not been released at the time
The adjacent graph provides a summary of the top 10 performing developers in terms of the volume of off-plan sales transactions in 2019. Emaar continues to lead the pack with more than 7,000 registered off-plan transactions, followed by Damac Properties with 1,276 transactions.