In its latest Dubai residential market update, Core Savills noted that 6,000 units have so far been delivered in 2018, with a further 15,500 units expected for the remainder of the year.
The report found that sales prices declined most sharply in central areas such as Downtown Dubai and Dubai Marina, which saw declines of 7 percent due to a large number of new launches in these areas which shifted demand from ready built to off-plan stock,
Core Savills partner Edward Macura noted that the effect of new stock impacting secondary sales prices within a community or in the adjoining areas “is one of the strongest reasons causing a delay in sales price recovery.”
Additionally, the report found that the rental market in core apartment and villa districts is starting to see noticeable drops, such as in The Springs (9 percent) and The Meadows (5 percent) as tenants take advantage of rents – which are 15 to 20 percent lower than in 2015 – to renegotiate with landlords.
With most rental relocations happening between April and June, Core Savills expects an interim dip in the continued downward rental trend.