Dubai’s residential properties value falls 11.5% in May
Residential properties across Dubai displayed an overall 11.5 percent annual fall in capital values for May, according to a key local consulting firm ValuStrat.
The VPI – Residential Capital Values for Dubai stood at 70.6 points declining at a continued accelerated monthly rate of 1.9 percent, Trade Arabia reported.
The weighted average residential capital value per sq ft in Dubai in May fell below the Dh900 mark for the first time since the 2010’s trough currently at Dh898 per sq ft.
The Covid-19 pandemic limited people movement impacting sales enquiries, property viewings by prospect buyers as well as physical inspections by valuation surveyors.
All properties monitored by the VPI saw monthly capital values down by as much as 2.1 percent. These include apartments in Jumeirah Village, Dubai Marina, Business Bay, Discovery Gardens, Jumeirah Beach Residence, Remraam, and villas in Jumeirah Islands, and Al Furjan.
Lowest registered capital value declines were found in Dubai Production City, International City, Arabian Ranches and The Meadows.
With the stay-at-home measures slightly relaxed, the cash sales transaction volume is slowly improving. The May figures were only 1 percent up, but still better than April’s weak performance.
According to ValuStrat, there was an improvement in ready homes activity, as cash sales volumes were 39 percent higher than April. However, May’s off-plan homes sales declined 10 percent when compared to April.
Properties developed by Sohba, Emaar, Nakheel, and Seven Tides topped the sales charts overall, stated the top consultant in its report.
Top off-plan locations transacted during May were in MBR City District One, Sobha Hartland, Jumeirah Village, Jumeirah Lake Towers and International City. Most transacted ready homes were Dubai Marina, Jumeirah Village, Dubai Sports City, International City and Al Furjan, it added.
