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.