Taking a look at the latest sales transactions in Dubai real estate market, the affordable housing communities are seeing better recovery as compared to high-end locations.
As compared to Q2, 2016, 10 locations are showing a price appreciation in Q3, 2016. The highest appreciation was observed in International City at 4% on quarter to quarter basis. The increase in motor city stood at 3.4 percent, 3 percent increase was recorded in Dubai Production City (DPC) formerly known as International Media Production Zone (IMPZ) and Downtown Dubai (Burj Khalifa District) witnessed an increase of 2.3 percent on quarter to quarter basis.
Many communities in Dubai real estate market went through a decline in sales price and Dubai Sports City (DSC) stood at top position with an average price drop of 5.6 percent. Other locations recorded a decline of less than 2 percent on quarter to quarter basis.
The annual decline in Dubai real estate prices stood at 0.6 percent according to a report issued by ValuStart Price Index. There was no significant change in prices in most of the locations during the month of October though. Communities like International City, Jumeirah Village Circle (JVC), Jumeirah Park and Discovery Garden saw an uplift in price from 0.7 to 3.2 percent.
In comparison with the peak price of 2014, the values in motor city are only 5.6 lower than that right now. Victory Heights in Dubai Sports City witnessed a price increase of 0.8 percent on quarterly basis.
According to an estimation, the total number of delivered residential units by end of 2016 will be 15,000 whereas the number stands at around 5,500 to date.
Apartments ranging between Dh2 to Dh3 million did not witness any prominent price changes.
The average residential asking rent in Dubai real estate market declined by 6.9 percent year-on-year basis. The quarterly decline in rental values stood at 1.6 percent.
In terms of commercial property such as offices, Business Bay stood as the top contender having 46% of total office sales. Other communities with high number of office sales include Jumeirah Lakes Towers (JLT). The overall office selling prices in Dubai real estate market remained flat throughout the year.