Cavendish Maxwell has released its Q1 2018 Dubai Market Report, providing a summary of the residential market activity in the emirate. The report highlights price movement, rent and yield statistics, residential transactions and upcoming supply of residential properties from data provided by Property Monitor, as well as information collected from Property Monitor Residential Survey of agents in Dubai.

The survey details how new enquiries, leasing activity and transactions have changed over the previous quarter, and provides an outlook on the second quarter of this year as predicted by professionals.

According to the report, residential property rents declined at a more pronounced rate than sales prices, resulting in yield compression in most communities in Q1 2018. It suggests that rent declines will be more pronounced in areas located away from central business districts and public infrastructure. Transacted prices for villas/ townhouses have settled above the 2017 average during Q1 2018, which is mainly due to reduced lower priced inventory entering the market this year compared to the first half of 2017. Meanwhile, trading prices for apartments continue to shift towards the lower end of the price band, averaging AED 1.2 million in Q1 2018.

The Property Monitor Residential Survey revealed that for Q2 2018, the majority of agents asked are predicting that apartment and villa/townhouse prices and rents will decrease by up to 5%. Regarding transactions in Q2 2018, 42.4% of agents expect an increase in new buyer enquiries, while 55.6% of agents expect an increase in new seller instructions. 38.9% of those surveyed believe new seller instructions will also increase during the quarter Q2 2018.

For the full report, visit the Cavendish Maxwell website.

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