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The Dubai real estate tracker data for August showed a further slowdown in Dubai property values, with 60 per cent of real estate agents reporting a drop in average sold prices over the past three months and only 13 per cent indicating an increase.
The Dubai Real Estate Tracker is based on survey data collected from two separate but complementary sources such as real estate agents and households across the region.
Softer market conditions were also reflected in the latest new buyer enquiries data with 54 per cent noting a decline over the past three months, which panellists linked to greater caution among buyers and weaker underlying investor sentiment.
The latest survey pointed to a rebound in confidence regarding the outlook for the next 12 months, with the proportion of agents expecting a rise in average property values (45 per cent) outstripping the number forecasting a reduction (30 per cent).
“The Dubai Real Estate Tracker survey is consistent with price data and shows a further slowing in the residential real estate sector over the summer months. While the slowdown is partly seasonal, other factors including concerns about the economic outlook and USD strength have weighed on demand,” said Khatija Haque, Head of MENA Research at Emirates NBD.
The survey of Dubai households signalled that 65 per cent continue to expect rising property values during the year-ahead against just 17 per cent that anticipate a fall.
Positive trends continued on the lettings side of the market over the three months to August, with real estate agents reporting both a rise in newly agreed rentals and increasing levels of new enquiries. Robust demand patterns in turn contributed to upward pressure on rents, with the latest survey suggesting an especially strong increase in apartment rental prices.
“The lettings market remains robust both in terms of the volume and price, suggesting that population dynamics are supportive of the real estate sector,” said Haque.
The latest survey suggested that lower international new buyer enquiries were a key factor weighing on demand conditions. Measured overall, the rate of decline in new buyer enquiries was slightly faster than that seen in the previous survey period.
Source: Babu Das Augustine, Banking Editor