Dubai: For those property investors wanting to buy on the dip, Business Bay and Silicon Oasis is where they should head for. Both clusters recorded 9 per cent declines in the first three months, to be at Dh1,178 and Dh729 a square foot, respectively. Sports City, Jumeirah Village Circle and The Greens recorded drops of 8 per cent to Dh957, Dh824 and Dh1,095 respectively, according to a new update from Chestertons Mena. “As a result of falling sales prices, many end users decided to benefit from the increased affordability,” stated Ivana Vucinic, Head of Consulting and Valuations and Advisory Operations, Chestertons Mena. “The number of transactions for completed units, handed over by developers, (was) up 10 per cent compared to the previous quarter (fourth quarter of 2017).
“This was to the detriment of off-plan transactions, which although they still dominate the market, volume declined by 19 per cent [in the first three months of 2018].”
Much the same pressure on sale prices continues in the villa marketplace. The Palm, the Meadows and Springs recording “capital depreciation of 8 per cent to Dh2,205 and Dh988 per square foot. The Lakes dropped by 6 per cent to Dh1,204 and Arabian Ranches to Dh942.
“The number of new launches dropped during the quarter, which appears to be a strategic decision by developers in a bid to stave off empty units or sales at reduced price points,” Vucinic said. “However, with a substantial pipeline of stock due to be released ahead of Expo 2020, sales prices are expected to drop further this year.”
On the rental side, the first quarter of 2018 declines were spread across “different unit types, contrasting with previous quarters where the declines were most prominently felt in larger units”, the report adds. The Greens had the steepest dip in rentals, dropping 4 per cent for a one-bedroom unit to be now available for Dh79,000.