Property sales in Dubai have fallen by 24% in Q3 201, while the prices for rentals of houses and apartments decreased by 1%. However, the prices for two-bedroom apartments in certain areas marked even sharp drop, by almost twice.
Experts estimated demand as stable and tenants are currently in quite a good position to renegotiate the terms of rents. Pressure on rental levels continue to exert cuts and reduced purchasing power. Despite the relatively poor performance of the market gross income from investments in property in Dubai may reach 10% depending on the apartment and the area.
The analysts indicate that at the end of the third quarter, housing prices in Dubai are 7.4% lower than the same period last year. The real estates prices in Dubai went down in 2014 with a sharp drop in oil prices and are currently 27% below the peak levels reached before the global crisis in 2008.
It is expected stabilization of prices to begin in the third quarter of 2017 due to the approaching host the world exhibition Expo 2020.
However, the downtrend will probably continue in 2017, when experts expect property prices in Dubai to fall by another 5%.
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