- Broker Directory
- My Tools
- News & Advice
- Market Trends
- Other GN Sites
The newly launched Dubai Property Tracker from Emirates NBD showed a modest overall strengthening in the Dubai property market, with real estate agents reporting slightly higher property values and rising new buyer enquiries.
The survey, sponsored by Emirates NBD and produced by Markit, contains original data compiled from a representative panel of Dubai real estate agents, alongside original survey data collected from a representative sample of households living in Dubai.
Transaction volumes were broadly stable over the past three months, with survey data suggesting that greater sales of apartments were broadly offset by a softer trend for villas.
“Amid a general slowing in real estate activity over the last year the Dubai Real Estate Tracker suggests that the apartment sector is faring relatively better than the villa sector at the moment, which is consistent with other transaction data year-to-date. Affordability in the villa sector appears to be the main constraint on demand,” said Khatija Haque, Head of MENA Research at Emirates NBD.
According to the survey the 41 per cent of Dubai real estate agents signalled a rise in property prices compared to 38 per cent who expects a fall. Latest data signalled a reduction in new international sales enquiries, with agents citing heightened global economic uncertainty, more subdued risk appetite and, in some cases, the impact of the stronger exchange rate on European investors.
The survey results are largely consistent with relative stability for Dubai property values as the mid-year approaches while, across the rental market, robust demand patterns appear well entrenched.
Dubai real estate agents indicated that robust domestic demand, especially for apartments, helped to support sales volumes and offset weaker external demand during the three months to April.
Despite lower international sales enquiries, the proportion of agents noting a rise in overall new buyer enquiries (45 per cent) exceeded those reporting a reduction (37 per cent). Although villas saw a drop in sales, which some agents linked to stretched affordability, this contrasted with rising interest for apartments. Looking ahead, real estate agents are downbeat, on balance, about villa prices over the next 12 months, while equal proportions expect higher apartment values (42 per cent) as those that foresee a decline (42 per cent).
Dubai households are far more positive about price momentum, with 57 per cent expecting higher property values and only 19 per cent anticipating a reduction.
The survey showed that on the lettings side of the market, strong demand for apartments helped drive a robust upturn in rental volumes during the three months to April. Around 46 per cent of real estate agents noted an overall rise in lettings, against just 26 per cent that experienced a decline.
Looking ahead, a greater proportion of real estate agents anticipate falling rent prices over the next three months (38 per cent) than those that forecast a rise (33 per cent). However, this contrasted with households’ expectations for their own rents, with over half (57 per cent) expecting the price to rise at renewal.
Source: Babu Das Augustine, Banking Editor, gulfnews.com