Dubai rent, sale prices continue quarterly fall

Agents expect further falls in Dubai rental values of up to 5 percent, according to the Property Monitor survey. (Shutterstock)
Updated 11 July 2018

Dubai rent, sale prices continue quarterly fall

  • Rental payments made in four checks increased by 6 percent during 2Q
  • Off-plan sales accounted for the majority of the total in the second quarter of 2018

LONDON: Dubai’s residential property market witnessed a continued decline in rents and sales prices during the second quarter of 2018 according to a new report on the emirate’s real estate sector.

Figures released by Cavendish Maxwell, in its 2Q 2018 Dubai Market Report, registered quarterly declines of 1.1 percent in residential sales prices and an average 2.5 percent drop in rental values.


International City (Clusters), The Greens in Emirates Living, Discovery Gardens and Al-Furjan witnessed the most pronounced decline.

Drawing on data from the recent Property Monitor Residential Survey for 2Q 2018, the report showed that most rental agreements made during this period were for one check (38 percent), which marked a 12 percent decrease on the previous quarter.

Rental payments made in four checks increased by 6 percent during 2Q as landlords offer financial incentives to keep units occupied.

Off-plan sales accounted for the majority of the total in the second quarter of 2018, with Mohammed bin Rashid City, Business Bay and Jumeirah Village Circle leading the way.

Dubai Marina, International City and Dubai Sports City were at the forefront in secondary market apartment sales while Emirates Living and International City led in secondary market sales among villas and townhouses.

The survey also showed that most agents anticipate a further drop in princes and rents by up to 5 percent over 3Q 2018.

FASTFACTS

2.5%: Drop in Dubai rental values in the past three months. Residential sale prices fell by 1.1 percent.


Oil prices surge after attacks hit Saudi output

Updated 16 September 2019

Oil prices surge after attacks hit Saudi output

  • The Houthi attacks hit two Aramco sites and effectively shut down six percent of the global oil supply
  • President Donald Trump said Sunday the US was ‘locked and loaded’ to respond to the attacks

HONG KONG: Oil prices saw a record surge Monday after attacks on two Saudi facilities slashed output in the world’s top producer by half, fueling fresh geopolitical fears as Donald Trump blamed Iran and raised the possibility of a military strike on the country.
Brent futures surged $12 in the first few minutes of business — the most in dollar terms since they were launched in 1988 and representing a jump of nearly 20 percent — while WTI jumped more than $8, or 15 percent.
Both contracts pared the gains but were both still more than 10 percent up.
The attack by Tehran-backed Houthi militia in neighboring Yemen, where a Saudi-led coalition is bogged down in a five-year war, hit two sites owned by state-run giant Aramco and effectively shut down six percent of the global oil supply.
Trump said Sunday the US was “locked and loaded” to respond to the attack, while Secretary of State Mike Pompeo said: “The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression.”
Tehran denies the accusations but the news revived fears of a conflict in the tinderbox Middle East after a series of attacks on oil tankers earlier this year that were also blamed on Iran.
“Tensions in the Middle East are rising quickly, meaning this story will continue to reverberate this week even after the knee-jerk panic in oil markets this morning,” said Jeffrey Halley, senior market analyst at OANDA.
Trump authorized the release of US supplies from its Strategic Petroleum Reserve, while Aramco said more than half of the five million barrels of production lost will be restored by tomorrow.
But the strikes raise concerns about the security of supplies from the world’s biggest producer.
Oil prices had dropped last week after news that Trump had fired his anti-Iran hawkish national security adviser John Bolton, which was seen as paving the way for an easing of tensions in the region.
“One thing we can say with confidence is that if part of the reason for last week’s fall in oil and improvement in geopolitical risk sentiment was the news of John Bolton’s sacking ... and thoughts this was a precursor to some form of rapprochement between Trump and Iran, then it is no longer valid,” said Ray Attrill at National Australia Bank.