No let up in pressure on Dubai property prices, rentals
Home prices and rents remain under pressure in Dubai, with property values dropping 4.11 per cent in February from a year ago levels. On the rental side, the dip was in the range of 6.5 per cent year-on-year as more communities and landlords give in to market sentiments, according to the Reidin tracker.
In Abu Dhabi, the squeeze on prices is even more intense — apartment values are down 9.15 per cent over a 12-month period. But when it comes to rentals, the dip is much more pronounced — 11.08 per cent annualised.
Developers will have a hard time balancing supply with demand in the short-term, and based on off-plan launches to date, the majority are taking a cautious approach. Upcoming mortgage rate increases will further act as dampener on buying interest.
Based on market feedback, the prime end of the residential market in Dubai continues to record some sales movements, but the mid-priced category has seen a tailing off in activity. Buyers out there are getting extremely selective in what they want and not even multiple incentives such as registration fee waivers or post-handover payments schemes are enough to get their immediate interest.
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