{"id":4019,"date":"2016-02-07T23:18:15","date_gmt":"2016-02-07T16:18:15","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=4019"},"modified":"2016-02-07T21:05:11","modified_gmt":"2016-02-07T14:05:11","slug":"dubai-house-prices-to-fall-further-but-at-a-slower-rate-than-2015","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-house-prices-to-fall-further-but-at-a-slower-rate-than-2015\/","title":{"rendered":"Dubai house prices to fall further, but at a slower rate than 2015"},"content":{"rendered":"


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\nHouse prices in Dubai are likely to fall further this year, but at a slower pace than in 2015 even as further supply comes on to the market, according to Asteco.The property consultancy’s fourth-quarter report for Dubai and the Northern Emirates stated that villa prices fell by 11 per cent last year and apartment prices dropped by 8 per cent.About 13,500 apartments and 800 villas and town houses were delivered last year, which was fewer than initially expected. As a result, approximately 22,000 apartments and 7,700 villas and town houses are due to be handed over this year, including 500 villas at Living Legends in Dubai\u00adland and 506 apartments at the much-delayed Marina 101 project.
\nAsteco said that the luxury end of the market remained oversupplied, which will lead to further house price declines and a drop in rents during 2016, with many tenants relocating to \u00adnewly-completed units. In the short term, this will have a knock-on effect on rents in the Northern Emirates, as any prolonged declines in Dubai typically affect Sharjah and Ajman.However, it added that the affordable housing sector, including staff and labour accommodation, remained undersupplied and said that when construction activity for infrastructure projects related to Expo 2020 ramp up, demand over the medium and longer term will continue to grow.
\nVilla prices dropped by an average of 15 per cent at The Meadows to Dh1,150 per square foot and by 13 per cent at Palm Jumeirah to Dh2,475, according to the study. Apartment prices fell by 16 per cent at Jumeirah Beach Residence to Dh1,370 per sq ft and by 14 per cent at Palm Jumeirah to Dh1,720 per sq ft.”With fresh new supply entering the market, this is forcing property owners, especially of older independent villas, to become increasingly competitive on pricing,” said the Asteco managing director John Stevens.
\n Rents fell by 1 per cent on aver\u00adage, but were much higher in premium areas such as Sheikh Zayed Road (down 12 per cent), Dubai Marina (down 13.3 per cent) and even DIFC (down 8.7 per cent).”For property owners, adjustments in terms of rental expectations and payment flexibility will have to be made,” Mr Stevens added. “And, as usual in cases of increased supply, better quality, well-managed or value-for-money properties will be able to achieve higher occupancy levels than others.”
\nAsteco said that on average, a one-bedroom apartment currently attracts a rent that is 24 per cent below the market peak reached in 2008, but 69 per cent higher than the trough in 2011. Two-bed apartments rent at 20 per cent below 2008 peaks.A ReidIn\/Unitas report, also published yesterday, said that although homes have only appreciated in value by just 16 per cent since 2009, total returns including rental income over the same period have been closer to 70 per cent. It argued that although prime properties have had higher levels of price growth (26 per cent), in terms of overall returns the gap is just 10 per cent as affordable housing offers better yields.
\nmfahy@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Dubai house prices to fall further, but at a slower rate than 2015<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

House prices in Dubai are likely to fall further this year, but at a...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-4019","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-12P","jetpack-related-posts":[{"id":4017,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-house-prices-to-fall-further-but-at-a-slower-rate-than-last-year\/","url_meta":{"origin":4019,"position":0},"title":"Dubai house prices to fall further, but at a slower rate than last year","date":"February 7, 2016","format":false,"excerpt":"\r \r House prices in Dubai are likely to fall further this year, but at a slower pace than in 2015 even as further supply comes on to the market, according to Asteco.The property consultancy's fourth-quarter report for Dubai and the Northern Emirates stated that villa prices fell by 11\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":43955,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/falling-dubai-housing-rents-to-come-under-further-pressure-this-year\/","url_meta":{"origin":4019,"position":1},"title":"Falling Dubai housing rents to come under further pressure this year","date":"February 13, 2017","format":false,"excerpt":"\r Housing rents in Dubai fell during the final quarter of 2016 and look set to come under further pressure this year.According to property broker Asteco, average apartment rents in Dubai fell by 5 per cent in the final three months and ended the year an average of 6 per\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":145274,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-real-estate-rents-for-villas-and-apartments-increasing-after-totalling-10bn-last-year-average-prices-revealed\/","url_meta":{"origin":4019,"position":2},"title":"Dubai real estate: Rents for villas and apartments increasing after totalling $10bn last year, average prices revealed","date":"June 3, 2024","format":false,"excerpt":"\r Dubai rents are on course to reach record levels this year as average prices for villas, townhouses and apartments increase\r \r Source : arabianbusiness.com\r Read more...Dubai real estate: Rents for villas and apartments increasing after totalling bn last year, average prices revealed","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2024\/06\/dubai-real-estate-1000x588-1.jpg?fit=1000%2C588&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":47169,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-real-estate-agents-dh5000-renewal-fee-is-far-higher-than-normal\/","url_meta":{"origin":4019,"position":3},"title":"Dubai real estate agent's Dh5,000 renewal fee is far higher than normal","date":"March 7, 2017","format":false,"excerpt":"\r I am about to renew my tenancy for a two-bedroom villa in Mirdif. I received the renewal notice from the real estate agency stating that I need to pay Dh95,000 for the annual rent and Dh5,000 for the agency fee. Are they allowed to charge such a high agency\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17230,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/sales-of-prime-villas-on-dubais-palm-jumeirah-fall-44-per-cent\/","url_meta":{"origin":4019,"position":4},"title":"Sales of prime villas on Dubai's Palm Jumeirah fall 44 per cent","date":"June 21, 2016","format":false,"excerpt":"\r The number of the most expensive villas sold on Dubai's prestigious Palm Jumeirah fell by nearly half in the first six months of 2016 compared with a year earlier as sellers shied away from marketing property in a falling market.According to property broker Core, an associate of Savills, transaction\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1266,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/many-new-dubai-homes-wont-be-delivered-on-time-in-2016-jll-says\/","url_meta":{"origin":4019,"position":5},"title":"Many new Dubai homes won’t be delivered on time in 2016, JLL says","date":"January 12, 2016","format":false,"excerpt":"\r \r The number of residential properties completed in Dubai last year was just 7,800 \u2014 considerably below the 25,000 units that had been forecasted by developers at the start of 2015, says JLL.The property consultancy said in its annual UAE real estate market review that materialisation rates \u2014 ie\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/4019"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=4019"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/4019\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=4019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=4019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=4019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}