Dubai apartment sales prices in the first half of 2019 were down 11.7 per cent compared to two years ago and declined 3.9 per cent compared to H2 2018, according to a report from Property Finder.
The median advertised price for Dubai apartments now stands at Dhs1,163 per square foot, the Property Finder Trends report found.
Apartment communities in Dubai that witnessed the biggest sales price drop in H1 2019 were Al Sufouh (-10.5 per cent), Remraam (-9.6 per cent), Downtown Dubai (-7.4 per cent), Old Town (-7.2 per cent) and Jumeirah Lakes Towers (-6.5 per cent).
Mirdif, Jumeirah Village Triangle, Dubai South, Arjan and Al Furjan resisted the price drop, the report added.
Meanwhile villa prices in Dubai also dropped 4.3 per cent in H1 compared to the second half of last year, to an advertised median price of Dhs855 per square foot.
Prices are now 12.1 per cent cheaper than they were in 2017.
Villa communities in Dubai that experienced the biggest decline in sales prices in H1 2019 were Damac Hills (-8.2 per cent), Emirates Hills (-6.6 per cent), Green Community Motor City (-5.4 per cent), Dubai Silicon Oasis (-5.2 per cent), Al Furjan and The Villa (-5.1 per cent).
Communities like Living Legends, District One in Mohammed Bin Rashid City, Mirdif, Green Community DIP and Palm Jumeirah Signature Villas recorded zero or a very marginal drop in villa sales prices.
New affordable off-plan properties in Dubai South, Dubailand and Town Square were popular with buyers, the report added.
“As new affordable villa communities are getting completed and handed over, we have seen a migration to these communities from popular areas such as Dubai Marina,” said Lynnette Abad, director of Data and Research at Property Finder.
“Families are choosing to live a little further out in the suburban areas of Dubai in order to gain access to a larger property with outside space. We have also seen a large influx of renters converting to home buyers, especially in these new villa communities,” she added.
Although overall sales transactions remained steady and in line with 2018, the type of properties being purchased is changing, the report found.
Apartment transactions are down by 5 per cent but villa sales are up by 35 per cent.
Dubai apartments remain the preferred property type, and although their year-on-year transaction numbers have declined, the value has increased.
“This is reflective of an end-user driven market. End-users tend to buy larger apartments and those in prime locations, while studios and one-bed apartments that offer higher yields are preferred by investors,” the report explained.
Downtown Dubai saw the most apartment sales in H1 2019 at 1,586, of which 1,288 were off-plan transactions. Dubai Hills Estate (972 off-plan apartment transactions) and The Lagoons in Dubai Creek Harbour (853 off-plan apartment transactions) were also popular.
For villas, there have been more transactions but at lower values, mostly in the new, affordable communities targeted at the low to middle income segment. Dubai South with 434 sales (all off-plan) had by far the most villa/townhouse transactions in H1 2019, while Town Square had 188 sales (128 off-plan).
Meanwhile, some of the higher value, older luxury villa communities have not performed as well, the report found.
“Vendors marketing un-renovated, poorly maintained prime located properties in the Palm Jumeirah or Emirates Living communities are at the mercy of the market and some have seen significant losses,” it added.
source: Gulf Business