Property prices in Dubai have fallen at higher levels than expected, yet some experts believe that the market will rebound next year.
According to a report by brokerage and consultants Cluttons, property prices in Dubai slipped by 5.6 per cent in the year ending September, with prices falling 1.9 per cent in the third quarter alone.
“Dubai’s residential market remains in a state of flux,” Cluttons said in the report. “Like many other global residential markets, confidence levels amongst buyers remain subdued.”
Prices have slipped by nearly one-third since peaking in 2008, according to Cluttons. Prices in the most expensive neighborhood in the emirate, Burj Khalifa, are 71.2 per cent below their 2008 peak.
At the end of October, the average property price in Dubai was AED1,246 (approximately Â£254) per square foot.
Dubai’s property prices have struggled to recover following a crash in the price of oil in 2014, which adversely affected the emirate’s economy. However, according to the latest ValuStrat Price Index property prices may rally towards previous peaks in 2018.
According to the International Monetary Fund (IMF), the UAE’s GDP is expected to grow by 3.4 per cent next year, with Dubai’s real GDP expected to grow 3.5 per cent.
Article published 12th December 2017