Cavendish Maxwell has released its Q3 2018 Dubai Market Report providing a summary of the residential market activity and highlighting price, movement and upcoming supply of residential properties. 
 
According to the report, Q3 2018 saw sales prices across the residential market have quarterly declines of 1.4% and 1.3% for villas/townhouses and apartments respectively. Meanwhile rental declines have averaged 1.3% over the same period. Rental declines were more pronounced in Dubailand, The Greens in Emirates Living, Motor City, Arabian Ranches and Victory Heights averaging 12 month change of around 7%. 
 
As for off-plan transfers, which have in the recent years been prominent in Dubai, the report noted that they accounted for 53% of the total transfers in Q3 2018. Business Bay, Mohammed bin Rashid City and Jumeirah Village Circle dominated the off-plan apartment during the third quarter of the year. On the other hand, International City, Dubai Marina, Jumeirah Village Circle led the secondary market apartment transfers, which accounted for 31% of the total apartment secondary transfers during Q3 2018. Secondary market transfers among villas surpassed the off-plan transfers in Q3 2018, led by Emirates Living, Arabian Ranches, Mudon developments which together accounted for 30% of the total secondary market transfers registered during the third quarter.

Cavendish Maxwell reports that much of the upcoming supply over the next six months is concentrated in Business Bay, Jumeirah Village Circle, Dubai Sports City, Dubai Silicon Oasis and Town Square. Approximately 72% of the upcoming supply over the next six months is expected to be handed over during Q4. The leading property consultancy predicts that increasing handovers will continue to impact rents in most locations across Dubai as tenants have more choice. This will also impact occupancies in existing stock and should be factored into net yield estimations for the forthcoming period, the report says.
 
The report also incorporates the Property Monitor Residential Survey, conducted among partner agents operating within Dubai. The survey shows that majority of agents expect prices and rents to decrease by up to 5% in Q4 2018. However, majority also believe that the transaction activity will improve over the next quarter and buyer enquiries, seller instructions and agreed sales will be higher than those in Q3.

To view the full report, go to the Cavendish Maxwell website.

For more information about the Cavendish Maxwell Q3 2018 Dubai Market Report, email Manika Dhama of Cavendish Maxwell via the contact details below. ​

See also:

Residents opting to buy properties in Abu Dhabi rather than rent, says Chestertons

The Alef Residences for sale on Dubai's Palm Jumeirah

New investment policies to drive Dubai’s real estate market, says JLL