Price index brings one good omen. It is
a decease. It is a 10.6% decrease in house prices.
This average decline brightens buying hopes. A correction in estate sector blends affordablility in prices. The residential sector grows 10.6% more
affordable. However, there are some
exceptions too.
Let’s glance at Cavendish Maxwell
provided data on Sunday. Property Monitor
finds this consultant entity seeing an 11% decline in Discovery Gardens, Emirates
Living, Arabian Ranches, Jumeirah Islands, and Dubai Sports City residential
estates. 11% is an average decline.
Experts see decline continuing in 2019.
They see stability dawning in 2020. Recovery will follow stability in 2021.
Savills Middle East sees 2019 adding a
further decline of 5 to 10%. It is in
addition to 2018 brought 6 to 10% decline in residential estates.
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P.N.C Menon finds Dubai House Price
Index (DHPI) attractive from investors’ perspective. He founded Sobha Reality.
Menon heads Sobha Reality now. He finds February 2019 brought 10.6% decline which
pushed sales momentum further.
Let’s see what S & P Global Rating
has to say. Sapna Jegtiani there foresees 2019 experiencing 10 to 15% decline.
It projects 5 to 10% further decline in 2020. Ms. Jegtiani doesn’t see 2021
positive either. Oversupply absorption takes time, she opines.
The month wise downward journey on DHPI
shows February witnessed a 1.8% decline. It
was 0.1 greater than what January witnessed. Asking prices for houses dipped
4.5% further February than in the previous quarter. On the AED scale, house
prices declined to 2,600,000 on an average.
The Dubai House Price Index (DHPI) has
been keeping tabs on the value of
residential estates since September 2015. AED2,100,000 and AED5,600,000 were
average prices of apartments and villa and townhouses in September 2015
respectively. DHPI finds 16% and 18%
decline in apartment and villa and townhouse asking prices respectively since
September 2015.
DHPI readings of February finds
stability in apartment standard prices, i.e., AED1800000. It changed marginally
in January. Monetary values of villa and townhouses weren’t lucky. These
declined to AED 4,600,000. February sustained the upward movement in Off-plan
apartment transfers as did the last year.
However, total volume figure portrays
situation differently. Property Monitor says a decrease visited off-plan
transfer rate in January and February of 2019. January and February of 2018
witnessed a similar decrease. The
decrease was 24%.
S&P adds that this decline peaked in
later half of 2014. Since then, prices
are declining. Prices are drawing near to the lowest
point of 2009 and 2010. These years witnessed a crash.
Both rents and asking prices of Dubai
estates have declined since 2014. This decline varies from 25 to 33%. S&P
finds it in nominal terms. S&P projects further decline. This decline will result in bad omens. This decline may match estate
quotations of 2010.
Asteco too adds to our information.
Asteco finds the additional supply pressurizing rents further. This trend will
continue throughout 2019. It entails the end of 2019. The full name of Asteco
is Asteco Property Management LLC. Asteco.com leads to its website.
Usually, tenants see low rents as a breeze.
They get some advantages. Tenants harvest benefits in size, location, and
quality fields. The additional house supply pressurizes rents. There is another
issue. It was handing over completed units. These were scheduled in 2018. Consequently, 30,000 new unit will populate
the estate world of Dubai further. These 30,000 units cover 3600000 square
feet.