Across Dubai, residential property has registered a decline for the last 12 months at an average of 2%. Rents were also recorded to be down by 5% in many of the key locations across the emirate. According to Cavendish Maxwell, a renowned property consultant, the rents for residential property for the first quarter of this year showed a decline at a rate that is more pronounced compared to the sales prices. This has resulted in the compression of yields in most communities.

The pressure concerning housing allowances has also had an impact on the performance of the rental market. The numbers of tenants that belong to the higher end have considerably shrunk as well. The report also states that the rate declines are even going to be more notable in those areas where supply is increasing as well as in those places that are not close to public infrastructure and central business spots.

For the last 12 months, the movement of prices has been considerably varied between actual communities as well as among the different buildings that belong to the same community. This reflects a notable differentiation in how properties that are available are trading now. About 61% of the total transfers that were done during the quarter were made up of residential properties that are off-plan.

It was also revealed in the report that a total of 3,800 housing units have been handed over for the first quarter if the year alone. This provides a summary of the activity of the residential market as well as providing highlights to statistics on rent and yield, price movement, upcoming residential property supply, as well as residential transactions. It is further revealed that majority of those that have been surveyed believed that for Q2, the prices and rents for townhouses, villas, and apartments are also likely going to decrease by as much as 5%.

About 42.45 of the agents that were surveyed regarding the market’s performance come Q2 expect that new buyer enquiries are going to increase. Of those that participated in the survey, 55.6% expect that new seller instructions will increase. Meanwhile, a sector that has been focused on warehousing and industrial businesses commented on the continuation of trends in the market from the past years as seen by how a majority of the enquiries are being done for market sectors that belong to the small to mid-size.

Tenants and buyers are also being more cautious. Most have been seen carrying out due diligence when it comes to options that are available for them prior to making any decision that is related to the real estate sector. This means prolonging the timeframe needed for transactions to get concluded but at the same time, is a characteristic of a market that is not only stable but is also mature.

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