Dubai's Real Estate Emerging From Downturn
Residential real estate prices fell faster in Dubai than any other major city in the world in the year to October but villa values are starting to see a turnaround in the emirate, according to new research. In Dubai the rate of moderation in price declines has been relatively muted with prices falling by 7.8 percent in the year to November, down from 8.1 percent in Q3. Whilst these headline numbers provide some indication of the direction of markets, going forward as markets continue to become more fragmented by asset types and neighborhoods, the headline data will become less relevant. The average prices continued to fall in the year to November, villa prices have increased by 1.5 percent over this period. Villa prices in Dubai have also shown relative outperformance and softened by only 2.2 percent in the 12 months to November. Established neighborhoods with limited levels of new supply, such as the Palm Jumeirah, saw early signs of market recovery, where both apartment and villa prices increased 6.2 percent and 4.2 percent respectively in the six months to November 2020. Despite the pressure on prices and unprecedented economic shutdowns, sales volumes in Dubai have been relatively resilient in 2020.
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