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August 9, 2016 | 15:20 | Dubai
Property tenants and buyers continue to have bargaining power as the Dubai residential property market levels off, says a report by UAE’s classifieds property platform dubizzle. The Q2 2016 property report reveals a mild decline in rental prices and a bottoming out of property sale prices in Dubai, as well as a decline in Abu Dhabi prices, compared to Q1 2016. The one- and two-bedroom apartment rents in Dubai experienced a 2% decline compared to Q1 2016, with no change in three-bedroom apartments. On the sales side, there was no overall decrease in price per sq.ft. suggesting the market is heading towards the end of the cycle and bottoming out, the report said.
“While observing 11 key communities, a decline in rental prices of 2% for one- and two-bedroom apartments has been highlighted in the report since Q1 2016, whereas no change was recorded for three-bedroom apartments. This indicates that there has been an overall slow-down in the decline of residential rental prices so far this year and it is close to bottoming out,” the report said, adding that Dubai’s residential rental property market sees a slowdown in price decline still giving tenants bargaining power.
When delving into sale price trends within communities, dubizzle’s report revealed that Jumeirah Village Circle (JVC), Jumeirah Beach Residence (JBR) and Al Barsha experienced a decrease of 3% in sale price per sq.ft. each. Properties within these areas are now selling at AED 867, AED 1586 and AED 1047 per sq.ft. respectively. The most searched communities to buy in, in Q2 were Dubai Marina, Jumeirah Lakes Towers (JLT) and JVC, with almost 5.8 million, 3.9 million and over 3.5 million searches in Q2 respectively. The report also revealed sale prices for commercial spaces in Dubai for Q2 2016. Downtown Dubai was identified the most expensive area to buy office space in with an average of AED 2850 per sq.ft.. Dubai Silicon Oasis, ranked as the lowest priced area at AED 669 per sq.ft..