Residential property prices in Dubai are down by 11 percent in the second quarter of this year compared to the year-earlier period, according to a new report.
Research intelligence firm ValuStrat said it has seen a steady decline in property values since the peak last year, adding that the rate of decline is easing and is expected to continue to decelerate over the remainder of the year.
The Residential VPI (ValuStrat Price Index), which is a 100 point index that started tracking residential values since January 2014 and tracks 26 key locations in Dubai, has shown a steady decline in property values compared to the second quarter of 2014.
April's VPI registered 99.5 points, almost on par with January 2014, while May and June registered 98.9 and 98.4 points respectively.
Residential prices saw an 11 percent annual decline, and are expected to continue to decelerate over the remainder of 2015, the report said.
When compared to the first quarter, apartments in Business Bay and International City witnessed an average value decline of 6 percent and 4 percent respectively, while villas in Arabian Ranches, Jumeirah Park and Al Furjan, saw a 3 percent decline, the report added.
ValuStrat said that, on average, apartment asking rents dipped by 2 percent in comparison to the same period last year, and villa rents were down by 3 percent.
However when comparing on a quarterly basis, apartment asking rents remained unchanged since the beginning of 2015 while residential rents were more than 20 percent higher than the same period in 2013.
In terms of housing supply, ValuStrat said Dubai's residential market anticipates a total supply of 26,100 apartments and 2,400 villas in 2015, bringing the total number to around half a million housing units.
Eighteen off plan projects have also been launched to add 5,000 units to the residential pipeline by 2019.
Haider Tuaima, ValuStrat research manager, said: "5,400 residential units were completed during the first half of 2015, a further 28,500 units are scheduled to complete in 2016. This is taking into account a number of projects with approximately 3,000 units originally scheduled for handover this year, moving their schedule forward for completion during 2016."
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