Dubai’s residential property market displayed an overall 11.1% fall in capital values in 2018, with quarterly declines of 3.1%, according to a fourth-quarter report from ValuStrat.
According to the report, the downward trend resulted in 24.7 percent citywide capital value loss since it peaked in mid-2014.
On an annual basis, 5 of 26 locations saw single-digit declines, including villas in Palm Jumeirah, Emirates Hills and Al Furjan and apartments in Dubai Marina and Jumeirah Village Circle.
Capital values in certain other locations – including the Meadows, Jumeirah Islands, International City, Discovery Gardens, Business Bay and The Greens – fell more than 15% annually.
Additionally, an estimated 19,367 apartments and villas – or 43% of the total supply as expected at the start of 2018 – have been completed.
Of this total, 9,454 units were mainly located in Dubailand and Jumeirah Village Circle.
Residential asking rents were found to have dipped 8.6% annually. On a quarterly basis, however, rents were found to have fallen 1.2%. Compared to the same period last year, listed rents were down 8.9% for apartments and 6.9% for villas.
Office transaction volumes, for their part, fell 11.9% compared to the previous quarter, while overall transacted office prices were 9% lower than last year. There was, however, a notable increase of 11% quarter-on-quarter.
In the hospitality sector, Dubai’s room count stood at 89,091 as of October, with 24,418 hotel apartments. An additional 2,713 rooms were added during Q4.
Citywide, occupancy rates between January and October were 75%, 2% lower than when compared to the same period last year. Revenue per available room (RevPar) declined 7.7%, while average daily rates were 5.5% year-on-year.
Source Credit: Arabian Business