Dubai residential projects said to reach saturation point

Dubai residential projects said to reach saturation point

The number of announced residential projects in Dubai has reached a saturation point in the third quarter of 2015 as house prices and rents continued to fall, according to a new report.

Phidar Advisory's Q3 Dubai residential research note said that apartment lease rates decreased a nominal 0.5 percent, while sale prices decreased 3.6 percent, pushing yields up to 7.5 percent.

Lease rates for villas decreased 1.5 percent and sale prices decreased 3.4 percent, which pushed yields up to 4.8 percent, according to Phidar's House Price Indices.

"The current yield expansion is necessary and healthy in the ongoing market correction," the report said.