The capital values in majority of established freehold locations in Dubai have witnessed price drops since the last quarter, ranging from 1.8 per cent to 4.5 per cent, said a leading local consulting firm ValuStrat in its Dubai real estate review for third quarter 2019.
Tracking change in capital values for a representative fixed basket of properties, the ValuStrat Price Index (VPI), displayed an overall 11.2% annual fall in capital values, with quarterly declines decelerating to 2.6%.
ValuStrat pointed out that on an annual basis, 3 out of 26 locations were more resilient to downward pressure and saw single-digit declines in villas at Palm Jumeirah and Emirates Hills, as well as apartments in Dubai Sports City.
Capital values dropped more than 15% annually for apartments in Discovery Gardens, and Dubai Production City, stated the rental VPI.
The 100 index with a base set for Q1 2014, the Dubai VPI monitors 16 apartments and 10 villa locations within the emirate’s freehold market and compares similar units within those
locations on a quarterly basis.
According to the report, the overall residential asking rents fell 7.9% year-on-year (YoY), while it was down 1.7% on a quarterly basis. Compared to the same period last year, listed rents were down 7.7% for apartments and 8.3% for villas.
The average annual rents for two-bed villas stood at Dh105,000, three-beds at Dh160,000, and four-bedroom villas remained at Dh209,000.
The studio apartments' annual rents were seen at Dh48,000, while the rents for one-bed was Dh67,000, two- for Dh97,000, and three-bedroom apartments were Dh130,000.
The Q3 2019 residential rental VPI in Dubai stood at 72.6 points, declining 27.4% since 2014, softening 1.7% quarterly and 7.9% annually. Dubai’s net yields averaged 5.9%, with apartments at 6% and villas at 4.8%.
On the Dubai office sector, ValuStrat said the capital values have fallen 2.5 per cent since the last quarter to 67.6 VPI points.
This translates to capital values being 32.4% lower than the same period during the index base year 2015, and 16.3% lower than the same period last year, it added.
The office space in Jumeirah Lake Towers witnessed the highest annual drop of 19.3% and 3.8% QoQ, followed by Business Bay with declines of 14.7% annually and 1.3% quarterly, stated the report.
Dubai International Financial Centre (DIFC) demonstrated relative resilience to the overall citywide downward trend, as capital values softened annually by 5.3%, it added.-TradeArabia News Service
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