Dubai apartment prices increase in the second quarter

Two thirds of Dubai apartments saw quarterly increases in prices while villas registered the most declines during the second quarter, consultancy ValuStrat said.
ValuStrat said that since reporting early indications of a recovery 15 months ago, the prices for the following locations have appreciated: International City (13.2 percent); Downtown Dubai excluding Burj Khalifa (9.8 percent); Motor City (12.3 percent) and Discovery Gardens (10.1 percent).
Those with the capital declines meanwhile were Dubai Marina (-5.7 percent); Jumeirah Lake Towers (-9.6 percent); Dubai Sports City (-7 percent); Al Furjan villas (-5.7 percent) and Jumeirah Islands (-5.7 percent).
Average capital values for office spaces meanwhile remained relatively stable, although spaces in Downtown Dubai posted a 22.3 percent annual rise while those Business Bay dipped 14.3 percent.
ValuStrat said the median transacted price for ready apartments during the second quarter was Dh11,733 per square meter, 7 percent higher compared with the same period last year, while the price for villas went down by 1 percent to Dh11,926 per square meter.
ValuStrat also said that 64 percent of all residential transactions during the second quarter were off plan, mostly in locations such as Jumeirah Village, Business Bay, Jumeirah Beach Residence and Downtown Dubai.
“Significant sales of off plan properties in established locations, particularly those with competitive payment plans, resulted in slowing price growth and transaction numbers of ready properties,” ValuStrat noted in its report.
Around 28 percent of the projected 25,000 units for this year have been completed as of June, with 70 of these completions concentrated in three areas: Dubailand, International City and Dubai Silicon Oasis.

Source: Arab News