Dubai real estate has always been an attraction for the investors. The flourishing economy and rising property demand have opened doors for innumerable property dealers in Dubai. But the case seems to be changing this year.
The third quarter of 2018 has proved to be beneficial for the property buyers. However, it’s the reverse for the property sellers because of a moderate decrease in the real estate prices in Dubai.
According to Arabian Business, the most significant decrease in real estate prices was realized in Deira and International City for 2-bedroom apartments. The decrease in Dubai real estate prices catches attention because prices fell by nearly 8.3% in the above-mentioned areas for 2-bedroom apartments.
However, the decline in the real estate prices for villas, townhouses, and apartments was recorded 1.1% in Q2 of 2018. While an average decline in the rental rates was recorded around 2.5%.
Resembling the case in Q3, the rents declined significantly in the areas including International City, the Greens, Discovery Garden, and Al Furjaan in Q2. Which reached 6% when computed a 12-month average.
Dubai real estate is a volatile market. You cannot take a close guess about what will be the market condition after 6 months. As per the data of Property Monitor, following were the changes in the prices for apartments for sale in Dubai from August 2018 to September 2018.
- Discovery Garden -1.52%
- Jumeirah Village Triangle -1.41%
- Business Bay -1.32%
- Jumeirah Lakes Towers -1.11%
- Jumeirah Beach Residence -0.96%
- Mirdif -0.93%
- DIFC -0.8%
- Palm Jumeirah -0.63%
The prices for apartments for rent in Dubai showed the following changes according to Property Monitor
- Dubai Marina -1.84%
- Discovery Gardens -1.24%
- Jumeirah Village Triangle -1.01
- Jumeirah Beach Residence -0.82%
- Jumeirah Lakes Towers -0.81%
- Business Bay -0.74%
- Palm Jumeirah -0.65%
- DIFC -0.28%
While in areas such as Al-Nahda and Dubai Sports City, the rates were almost stagnant if we talk about the rents throughout the quarter.
The most searched area for various reasons, however, remains Dubai Marina with an average cost of AED 55,000 for renting a studio. The average costs for renting one-bedroom and 2-bedrooms stand at AED 81,000 and AED 120,000, respectively.
The studio apartments for sale in International City reported a fall of 8.2%, but an increase in the price of studios was reported in Jumeirah Village Circle. Which went from AED 440,000 in Q2 to AED 473,000 in Q3
Dubai Marina most of the time remains the hottest destination in Dubai real estate market. Maintaining the trend, Dubai Marina appeared to be the favorite location for apartments for sale.
Prices in Dubai Marina did not show a considerable difference and stood, on average, at AED 850,000 for a studio. 1-bedroom apartment and 2-bedroom apartment cost AED 1.21 million and AED 2 million, respectively.
A decline in average sales prices was witnessed in most of the areas, as enlisted above. But for studios, the prices in Jumeirah Beach Residence showed an increase from AED 1 million to AED 1.15 million in Q3
As put forward by Arabian Business, the prices for 1-bedroom apartment stayed similar at AED 1.5 million. While for a 2-bedroom apartment, prices increased in Q3 from AED 2.1 million to 2.2 million in comparison with Q2 of 2018.
As per the foresight of business speculators, this is the perfect time to invest in Dubai real estate. Becoming a property owner in Dubai is nothing easy. If there’s an opportunity, the investors and property searchers must exploit it.
Even with the decline in prices, some areas went up in terms of property prices. Therefore, you never know when the market conditions change. If you’re seeking to buy or rent a property in Dubai, then this is the green signal for you to go ahead with the decision.