Residential property market in Dubai looking stable
The residential real estate market in Dubai maintained its stability in the year to April 2016, despite prices falling, according to the latest analysis report on the emirate.
Despite a 9% year on year drop across the mainstream market, the General REIDIN sale price index remained relatively flat on a monthly basis, with no noticeable changes in the performance of both apartments and villas, says the report.
Dubai’s prime market continued to outperform the market average with the prime price index down 5% in the 12 months to April 2016 compared to the previous 12 month period, the report from international real estate firm Knight Frank.
It says that it is encouraging that prices in the prime segment increased 2% on a quarterly basis between the fourth quarter of 2015 and the first quarter of 2016. The performance of prime apartments outweighed that of villas, with the index pointing to a 2% quarterly increase over the same period. In turn, prime villas recorded no significant price change.
The Knight Frank report also says that a number of factors have supported this regulation in prices and are set to support the return of confidence to the market including the government commitment to infrastructure spending.