The average price of an apartment in Dubai has fallen to AED1.2 million ($330,000) and are likely to drop further in 2019, according to new research.
Cavendish Maxwell’s Property Market Report for Dubai in 2018 also said that average villa/townhouse values in the emirate have dropped by AED500,000 in the past year to AED1.8 million.
The report said the prospect of purchasing a residential property in Dubai is now “more attractive for residents and overseas investors alike”.
Manika Dhama, head of Strategic Consulting and Research at Cavendish Maxwell, said: “Dubai’s real estate market continued to face challenges in 2018. Certain fundamental demand factors, like increased government spending, regulations, policies and up-take need to improve for a recovery in 2019.”
The report said that in the office sector, rentals mostly declined in secondary locations, as tenants and investors favoured Grade A stock in prime business areas such as DIFC, Business Bay, Dubai Marina and One Central buildings in the World Trade Centre district.
It added that Dubai’s retail sector witnessed developers becoming more flexible on lease terms and offering incentives to retain tenants and new entrants, in order to offset the downward pressure.
Demand from international brands for outlets in destination malls such as Mall of the Emirates and The Dubai Mall remained strong, it noted.
Cavendish Maxwell also said Dubai’s hospitality market continued to see incentives from the Dubai government to strengthen demand, such as free limited-stay visas for transit passengers and a VAT refund scheme for tourists.
The report recorded a further 1,303 rooms added to Dubai’s hotel room inventory, in addition to the Dubai Corporation of Tourism and Commerce Marketing’s (DCTCM) reported figures, marking a total room inventory rise of 6.9 percent in 2018.
Dubai Land Department figures showed a total of AED194 billion worth of transactions occurred from January to November, with Emiratis responsible for the largest share in Dubai’s real estate market, worth AED11.5 billion, followed by Indians, Brits, Pakistanis and Jordanians.