Areas in Dubai Where Property Prices are Declining
Currently, the price index for the real estate industry in Dubai indicates that the average annual prices for houses will decrease by 10.6%. This makes houses in Dubai very affordable at the moment while the correction in the sector is still ongoing. Because of this, even more than 10% of annual decline is observed across residential communities, with some areas having a greater decline.
In fact, Meraas Sur la mer prices from meraas off plan projects Dubai and District One Apartments have some of the most affordable prices of housing at the moment. Aside from these areas, Arabian Ranches Villas, Discovery Gardens, Emirates Living, Jumeirah Islands, and Dubai Sports City have also lowered their prices and were registered to have an annual decline in price of more than 11% average. This was stated by Property Monitor.
This decline in price is predicted by a lot of real estate analysis teams. It was mentioned that there would be a steady decline that would last within 2019. However, it would stabilize in the year 2020 and recover in early 2021.
Top real estate brokers in Dubai also forecasted that there would be another possible 10% decline happening in Dubai before hitting rock bottom. Despite this, industry leaders look at this occurrence in a positive light. This is because the 10.6% decline will encourage more real estate buyers to make purchases, thus increasing the overall sales and momentum of Dubai’s real estate industry.
However, credit analysts believe that it would take time for stabilization and an increase will be observed. In total, there is around Dh 2.6 decrease in the average housing prices in Dubai. In addition, this decline has always been happening since the past few years in Dubai. The last peak was in the second half of 2014. In fact, according to the data gathered from the real estate industry, property prices have been falling 25% to 33% nominally.
Hence, while stabilization and an increase in real estate prices are not yet observed, this is the best time to purchase lots and houses. Tenants can also benefit from lowered renting fees and have a chance to move into a different area with better quality living conditions. This is because, generally, most of Dubai have been experiencing and feeling the decrease in real estate and housing rates since last year.