Average apartment prices in Dubai declined by 15.1 per cent in the year to 2019’s second quarter, according to a recent report.

The Cavendish Maxwell UAE Property Market Report also  found that villa and townhouse prices dropped by 14.7 per cent in the same period, while rental declines in Dubai averaged 12.5 per cent.

Rents for villas and townhouses dropped by 12.5 per cent.

Meanwhile, in Abu Dhabi average sales prices declined by 12.6 per cent for apartments in major investment zones in the year to 2019’s second quarter.

Villa and townhouse prices registered a similar average decline of 12.1 per cent.

Aditi Hariharan, Senior Consultant, Strategic Consulting and Research at Cavendish Maxwell said it had been a challenging year for the country’s property market.

“Conditions remain conducive for tenants who are well-positioned to demand rent-free periods, fee waivers and flexible payment terms from property owners, and potentially upscale to bigger units which may have previously been beyond their reach,” he said.

“Whilst we have noticed a slower rate of price declines in some areas over the last 12 months, this is still contingent on new supply and actual materialisation rates, which have averaged 40-50% over the past few years.

“The government continues to introduce measures to stimulate the market, with Abu Dhabi recently opening up investment zones to expat property buyers for the first time.”

The report suggested that weakening demand for office space in the face of oversupply is also resulting in less office space being built.

However, the report suggests that interest in well-located Grade A assets remains strong as they are seen as low-risk.

To read the full report, download your copy here: https://marketing.cavendishmaxwell.com/reports/q2-2019-uae-market-report/

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