A review of property prices in Dubai has shown that the sale prices of property has fallen by a significant amount. The sale price of villas fell 8-11% over the last year. This has been attributed to lower demand as a consequence of a fall in the oil prices and the high end of the market has been particularly badly hit. However, the rental prices of apartments has continued to rise and the average annual rental across all bedroom ranges is now $37500 per annum.
The largest declines in villa prices have been noted in the Meadows 13%, Jumeira 15% and Arabian Ranches 19%, all areas associated with the luxury end of the market and investment purchases. Part of the large fall in prices has been attributed to a large pipeline of villas in construction being released for sale amidst a time of relatively low demand.
The most popular areas for residential apartment leases are Mirdiff and Al Barsha which saw rises of just under 10% in annual rental value. These are areas popular with expatriate workers.
This is good news for seekers of luxury residential property in Dubai who can snap up a bargain but for those seeking to rent an apartment, the prices are getting higher.