The residential real estate market in the UAE kept continued to improve in Q2 2021, with prices in Abu Dhabi registering Y-o-Y gains for the second consecutive quarter in more than five years, while real estate prices in Dubai declined albeit at a slower pace, the UAE Central Bank said in its quarterly economic review.
In Q2 2021, residential real estate prices marked a second quarter of significant Y-o-Y increase in Abu Dhabi, but slightly declining Q-o-Q, after three consecutive positive quarters of Q-o-Q growth.
According to the REIDIN house price index, the average price in the Abu Dhabi housing market increased for a second consecutive quarter compared to a year ago. Average Abu Dhabi residential prices registered a growth of 2.2 percent Y-o-Y in Q2 2021.
Rents in Abu Dhabi declined in the second quarter of 2021 by 5.7 percent Y-o-Y. The decline in rents by 1.1 percent Q-o-Q, in parallel with the drop in sales prices Q-o-Q by only 0.5 percent, resulted in declining rental yield to 6.5 percent, compared to 6.6 percent in the first quarter of the year.
Dubai real estate
In Dubai, sales prices continued to decline in Q2 2021, with Q-o-Q drop reducing further.
According to the central bank, property prices in Dubai declined on average by 6.3 percent Y-o-Y in Q2 2021, while rents rose by 1.7 percent Y-o-Y.
The implied rental yield moved to 7.2 percent in Q2 2021, up from 6.7 percent in the previous quarter, as a result of rise in rents and decline in sales prices, the UAE central bank said in its review.
(Reporting by Seban Scaria ; editing by Daniel Luiz)
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