Decreasing property prices, particularly in the rental market, has been a trend in 2017, and it’s expected to continue heading into the new year.
This is the latest data from property search portal Propertyfinder in its trends report covering Q2 and Q3 of this year.
The drop in prices – largely attributed to the economic slowdown and massive job cuts across various industries – are noticeable both in Dubai and Abu Dhabi, the two emirates with the highest concentration of both commercial and residential property development in the country.
While both emirates showed a sharp decline between the months of April and October, Abu Dhabi has exhibited a much faster drop in the rental market.
Rental prices dropped by eight percent in Al Ghadeer and Corniche area, over six percent in Al Raha Beach and five percent in Al Reem. Properties on Corniche Road and Salaam Street, on the other hand, registered a decline of four percent, while Al Bateen saw a drop of five percent.
Not all areas, however, followed the downtrend.
Mohamed Bin Zayed City registered a 13.84 percent increase, while Al Mushrif prices jumped by 12.81 percent. Muroor area and Mohamed Bin Zayed City are emerging as two of the more popular locations for renters, with Al Reem Island remaining on top of the field. Khalifa City maintains its top position as the most popular villa community to rent in, followed by Mohamed Bin Zayed City and Al Reef.
Speaking about the market’s outlook, Propertyfinder CEO Michael Layhani said: “Yes, prices have dropped this year and have consistently been doing so since the market peaked in mid 2014.
“But is a healthy real estate market defined purely by rising prices? Here at Propertyfinder, we like to take a long-term view and see incremental price movements as a sign of maturity. Falling prices, as we’ve seen, makes buying more feasible for a larger percentage of the population.”