Property prices and sales still falling in Dubai and Abu Dhabi

Residential sales and prices in Dubai are still on a downward trajectory and in neighbouring Abu Dhabi the market is also down apart from rentals.

The Dubai residential property sales price index from REIDIN fell by 1.29% in May and prices are now down 5.7% year on year.

A breakdown of the figures shows that apartment sales prices fell 1.19% month on month and are down 6.8% year on year while villa sales prices registered were down 1.72% on a monthly basis and down 0.8% year on year.

Residential property prices in the Dubai rental market fell by 0.37% in May 2015 but have increased 1% year on year.

In this sector apartment rental prices fell 0.44% month on month but are up 1.2% year on year while villa rental prices also fell 0.44% month on month and are unchanged on an annual basis.

The firm’s Abu Dhabi residential property price index fell by 0.27% in May and prices are down 2.3% compared to May 2014.

A breakdown of the figures shows that apartment sales prices fell 0.52% month on month and 4.5% year on year while villa sales prices increased 0.8% on a monthly basis but are still down 1.2% year on year.

Residential property prices in the Abu Dhabi rental market have fared better, up 0.37% month on month and up 5.1% compared to May 2014.

Apartment rental prices increased by 0.18% month on month and 2.8% year on year while  villa rental prices were up 0.68% on a monthly basis and 7.5% year on year.

Meanwhile, the latest figures from the Dubai Land Department (DLD) show that Dh64 billion of property transactions were completed in the first quarter of 2015 of which Dh24 billion was from property and land sales and Dh37 billion the result of new mortgages.

The most popular areas for unit sales were Business Bay, where 1,202 units were sold for a combined Dh1.84 billion, followed by Dubai Marina.

Of the Dh24 billion worth of land and property bought, some Dh9 billion was bought by GCC investors with Dh5.8 billion to Emiratis and Dh1.9 billion to Saudis. Dh3 billion was from other Arab investors and Dh12 billion from non-Arabs.

When it comes to buyers outside of the Gulf region, the data shows that Indians bought Dh3 billon of properties, British buyers bought Dh1.9 billion and Pakistanis bought Dh1.4 billion. Iranian and Russian buyers rounded out the top five nationalities of non-Arab investors.

‘The figures are showing a well-established trust in our real estate market,’ said the DLD director general, Sultan Butti bin Mejren.