Annual house price growth in Dubai softened by 5.6 per cent in October 2018, according to property consultancy Cavendish Maxwell. Prices declined by 1.2 per cent month on month.
House prices in Dubai are expected to continue declining further until the end of 2018 and into the start of 2019. There is increasing downward pressure on premium properties in particular, and the average transacted price for residential property across Dubai has been moving towards the under Dh2 million mark.
In October, secondary market transfers for villas outpaced off-plan activity, as has been seen from November 2017 onwards. However, for apartments, off-plan transfers continued to dominate, though the volume of transfers for under-construction apartments declined by 20 per cent year on year, the consultancy added.
According to the House Price Index, the average villa/townhouse price stood at Dh4.9 million, with the average apartment price being Dh1.9 million in October 2018. House prices in the three months to October were 3.5 per cent lower than the previous quarter.
As of October 2018, apartment and villa/townhouse prices have declined by 11 per cent and 13 per cent respectively, compared to their prices of Dh2.1 million and Dh5.6 million in September 2015.