Prices will continue dropping - especially apartments
Dubai rents will keep falling in the third quarter of the year, with the oversupplied apartment sector experiencing the steepest decline, according to real estate consultancy Landmark Advisory's latest report.
Landmark said in its June guide for sales and leasing in the emirate that it expects further decreases in Dubai rents for the third quarter but that there are signs that rents are stabilising.
For potential home buyers, the latest price map from Landmark Advisory indicate that ‘distressed sale' opportunities are largely finished, as sellers refuse to lower existing prices.
In some cases, buyers are paying increased rates for sought-after residential developments with limited homes available, according to the transaction-based reference map.
"Smaller villa developments with a limited supply that have tapped into sufficient value recognition among end-users with regards to location, layout, build quality and amenities/facilities are among those residential developments experiencing price increases," said Jesse Downs, director of research at Landmark Advisory.
"Examples in the sales market include Jumeirah Islands and Green Community."
Landmark said apartments had experienced a steeper fall in rental and sales prices than villas, and that this would continue to be the case.
The combination of the economic downturn and the completion of a large number of high rise apartments last year have resulted in an oversupply in that segment, it noted.