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Average sold prices declined through the second quarter, while new lettings continued to increase sharply in Dubai, reflecting strong rental demand, according to the Emirates NBD Dubai Real Estate Tracker. As real estate agents indicated a price correction for property values over the three months to June, the survey pointed to a robust and accelerated upturn in rental demand — 51 per cent noted an uptick in apartment lettings against 13 per cent who experienced a fall.
Apartments vs villas
Exactly 41 per cent signalled an upturn in villa lettings, while only 18 per cent suggested a reduction. In terms of new rental enquiries, the survey indicated that demand for apartments is rising faster than villas. It also revealed that households’ expectations of rising property values contrasted with a cautious outlook among agents. Around two-third of Dubai households (66 per cent) anticipate a rise in their property value over the next 12 months, compared to 17 per cent anticipating a reduction.
Agents expect a moderate fall in average rental prices over the next three months. However, among households with rent renewal in the next three months, 58 per cent foresee a rise in rental price and 15 per cent a reduction.
“The findings of the latest Emirates NBD Dubai Real Estate Tracker survey are consistent with weaker sales price data that we have seen in the second quarter,” said Khatija Haque, Head of Middle East and North Africa Research at Emirates NBD. “As the [tracker] is not seasonally adjusted, slower activity as we head into the summer holidays was to be expected. However, the underlying data suggests the market is more evenly balanced than the headline indices [show], and all indicators for the rental sector suggest that the population dynamics remain supportive of the real estate market in Dubai.”
The survey, sponsored by Emirates NBD and produced by Markit, contains original data compiled from a representative panel of Dubai real estate agents and households in the city.
Source: Property Weekly