Real estate sales prices and rents continued to decline across Dubai in the second quarter of 2018, according to a new report from Cavendish Maxwell.
In its Q2 2018 Dubai Market Report, Cavendish Maxwell found that sales prices across the residential market registered declines of 1.1 percent for villas, townhouses and apartments.
Over the same time period, rental declines averaged 2.5 percent. Rent declines were markedly steep in areas including International City (clusters), the Greens in Emirates Living, Discovery Gardens and Al Furjan, which averaged 12-month changes of over 6 percent.
Using data from Property Monitor’s database of rental contracts, Cavendish Maxwell also found that the majority of rental agreements for residential properties were for one cheque (38 percent), a 12 percent decrease compared to Q1.
Additionally, rental payments made in four cheques increased by 6 percent, which Cavendish Maxwell said is a result of landlords offering incentives to keep units occupied.
Of residential sales, off-plan sales were found to have accounted for 58 percent, dominated by off-plan sales in Mohammed bin Rashid City, Business Bay and Jumeirah Village Circle.
Apartment secondary market sales, however, were led by Dubai Marina and International City, which, along with Dubai Sports City, accounted for 33 percent of the total apartment secondary sales during Q2.
Meanwhile, villa and townhouse sales were surpassed off-plan sales in Q2, and were led by Emirates Living and International City, which together accounted for 23 percent of the total secondary market over the course of the quarter.
For the rest of 2018, upcoming supply is concentrated Business Bay, Jumeirah Village Circle and the Downtown Burj Khalifa area. Increasing handovers are expected to impact rents across Dubai, as tenants will have more choice.
According to Cavendish Maxwell, the report also shows that the vast majority of agents expect prices and rents to decrease by as much as 5 percent in Q3.