Dubai-UAE: Asteco’s Dubai Real Estate Report Q1 2018 has recorded an annual decline in villa and apartment sales of 6% and 9% respectively, with large villas at high price points generating limited interest, mainly due to the lower investment yields associated with this type of product.
Affordable housing options remain at the forefront of buyers’ interest, with many banks and developers stipulating a minimum monthly salary of AED15,000 in order to purchase property in the emirate.
The annual rental decline, for both apartments and villas, has averaged approximately 10%, whilst incentives such as multiple cheques, rent-free periods, and the absorption of utility, maintenance and/or agent fees have become the norm.
Some of Dubai’s popular communities have witnessed the sharpest decline in rents. These included Jumeirah Beach Residence recording a 15% drop since 2017, while Downtown Dubai, Dubai Marina and Deira come in a close second with a 14% decrease. Other areas that have demonstrated a significant decline in rents are: Palm Jumeirah, Business Bay, Greens and Dubai Sports City among others.
Villa rentals in Jumeirah Village and Jumeirah Park have seen a decrease of 15% and 13% respectively, while Arabian Ranches, Palm Jumeirah and Springs are also proving cheaper to rent compared to 2017 rates.
For more details, visit www.asteco.com