The cost of housing in the emirate has been continuously decreasing for two years
Residential real estate prices in Dubai in the third quarter of 2018 decreased by 7.4% compared to the same period of the previous year. Such data sounded the publication Propertywire.
In the second quarter of 2018, the cost of housing in the most populated emirate of the UAE decreased by 5.8% on an annualized basis. That is, the pace of falling prices continue to grow. In the neighboring Emirate of Abu Dhabi, the trend is opposite, the pace of price reductions there is slowing. On an annualized basis, property in Abu Dhabi fell by 6.9% in the second quarter and by 6.1% in the third.
True, the Land Department of Dubai (DLD) has not yet summed up the fourth quarter of 2018 in the real estate market, when the market situation in the emirate improved. Between December 17 and December 30, more than 2,000 home purchase transactions were concluded in Dubai, and the total amount of transactions together with other types of real estate amounted to about $ 5.1 billion at the end of the year.
For comparison: in the first eight months of 2018, the total volume of the property market in Dubai was $ 3.24 billion, and the number of transactions in January-August was less than 1000. Nevertheless, forecasts of market experts for 2019 are pessimistic, writes International Investment.
The main hopes of market participants are still related to the holding of the international economic forum Expo 2020 in the emirate. But until then, as market participants believe, prices in the residential real estate segment in the Dubai market will continue to decline.
It is projected to continue falling in 2019 and rental rates in the housing market. The decline in key market indicators has continued unabated in the emirate since the beginning of 2017. Prior to this, despite the general decline in the market, there were seasonal or segmental periods of growth.
According to the Central Bank of the United Arab Emirates, one of the factors weakening the demand for real estate is a decline in employment in the United Arab Emirates, especially among employees, who were previously a fairly large group of home buyers. In the private sector, most jobs in the oil exporting country are foreigners.