2018 is set to be another favourable year for tenants with rents predicted to drop as a result of the sheer amount of supply projected for delivery this year.
According to Asteco, 23,000 apartments and 8,500 villas are scheduled for handover in Dubai in 2018. In 2017, Dubai saw the delivery of 13,000 apartments, 3,600 villas, Asteco adds.
The decline in residential sales prices in Dubai has slowed down but rents are still seeing a fast decline – which is good news for tenants, according to Reidin. Abu Dhabi continues experiencing a higher decline both in rents and sales prices.
Dubai sales prices
Dubai residential property sales prices declined 0.14 per cent in January 2018 and 3.67 per cent year on year, says Reidin data. Apartment sales prices registered a minimal drop in January 2018 with a decrease of 0.03 per cent month on month and 3.74 per cent year on year. Dubai villa sales prices registered a drop in January 2018 of 0.58 per cent month on month and 3.36 per cent year on year. A few areas in Dubai such as Dubai Sports City, Discovery Gardens and Dubai Marina registered a sales price increase in January.
According to Reidin, Dubai residential rents decreased 0.43 per cent in January 2018 and 7.65 per cent year on year. Apartment rents registered a decrease in January with a 0.29 per cent drop month on month and a 7.43 per cent decline year on year. Villa rents registered a decrease of 1.22 per cent month on month and 8.85 per cent year on year. Rental prices in some affordable areas such as Discovery Gardens, Jumeirah Village Circle and Dubai Silicon Oasis showed minor uptick changes.
Reidin’s operations and research director Ozan Demir said: “Dubai and Abu Dhabi residential sales markets have continued to soften during January albeit on a lower rates when compared to previous periods due to subdued real estate investment activity. Even though average sales transaction ticket prices remained unchanged, number of residential transactions in the secondary and off-plan markets have declined around 25 per cent year on year in January 2018.”
Approximately 9,000 residential units, including 6,200 apartments and 2,800 villas and townhouses are anticipated for completion this year, says Asteco.
Abu Dhabi residential sales prices decreased 0.4 per cent in January 2018 and a 8.04 per cent decrease year on year. Apartment sales prices registered a drop in January of 0.50 per cent month on month and 9.21 per cent year on year. Villa sales prices registered a decrease in January of 0.10 per cent month on month and 4.25 per cent year on year.
Abu Dhabi residential rents decreased 0.99 per cent in January 2018 and 10.85 per cent year on year.