Dubai home price correction continued in Q3 2018, study finds
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Chestertons MENA said the ‘downward correction’ in Dubai’s real estate market will “continue over the next few years”, with fresh data from the firm revealing the emirate’s property market remained sluggish in Q3.
According to the Dubai-based real estate group’s Q3 Dubai Residential Market Report, the downward price corrections Chestertons witnessed in Q1 and Q2 2018 have continued into the third quarter, “albeit at an increased pace”.
Off-plan sales did not fare much better in Q3 with higher declines in sales compared to completed units – a sentiment the firm said was “echoed” at property event Cityscape Global 2018 held earlier in October.
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“There were [fewer] high-profile launches compared to previous years, with many developers launching new phases within existing schemes,” the report read.
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Rental rates have also taken a hit in Q3 according to Chestertons as a consequence of “additional supply being [delivered] to the market, thus offering more chose to potential tenants”.
“We expect rental declines to continue over the coming quarters as the pipeline increases,” the report added.
Taking all its data into account, Chestertons concluded: “Unless there is a significant decline in construction activity, a boost in population, and further economic stimulus created in the short term, it is unlikely the Dubai residential market will reach a demand and supply equilibrium in the foreseeable future.”
Chestertons noted that recently launched UAE Government initiatives would benefit the emirate’s property market. These include the newly announced expat retirement visa, aimed at enticing retirees to remain in the emirate if they meet certain eligibility requirements, and the 10-year residency visa, announced in May and aimed at attracting top talent to the country.
Information from: Construction Week Online (Website/Magazine) by Digital Media Inc.