Values continue to recede During the first three months of 2018, the decline in average residential values across Dubai appeared to gather pace, falling by 2.5%.
This comes hot on the heels of the 1.5% fall during Q4 2017, which resulted in an overall contraction of 5.6% last year. The latest change during Q1 means that average home prices are 7.2% down on this time last year.
The sharpest correction has taken place at the Green Community, where average villa prices fell by 12%, or about AED 91psf, to AED 675 psf. In absolute terms however, villas on the Palm Jumeirah (down AED 117psf) registered the largest drop during Q1 2018.
The market’s behaviour continues to be underpinned by pricing and affordability, with homes priced above AED 2,000 psf seeing a persistent deterioration in values, while those priced below AED 1,000 psf, remain virtually unchanged, as has been the case for apartments in submarkets such as International City, Discovery Gardens, IMPZ and Motor City.