Dubai property price declines slow to lowest rate in three years

Property price declines slowed to their lowest rate in three years last month, according to new research.

Real estate consultants ValuStrat said average values in Dubai slipped by just 0.1 percent in December.

Its VPI – Residential Capital Values for Dubai index stood at a stable 65.3 points, although this was still down by 13.8 percent on an annual basis.

“On a citywide level, capital values of homes approached stabilisation at the end of 2020, as the downward trend of recent years currently appears to be coming to a gradual end,” ValuStrat said.

It added that stability and marginal improvements in prices were observed in 90 percent of established villa communities as well as 63 percent of free-hold apartment areas.

December also registered a 19.5 percent monthly gain in transactions of cash-based sales, as existing ready homes saw an increase of 31.8 percent. Off-plan sales also grew, but at a lower monthly rate of only 2 percent.

According to the VPI, the only improvement in apartment prices was observed in International City but given the high demand due to record low prices per square foot, villas demonstrated higher resilience.

Most villa freehold locations saw capital values stabilise this month, and, in some areas, continued to register minor monthly increases.


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