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July 14, 2016 | 10:30| Dubai
The second quarter 2016 real estate review issued by leading local consulting firm ValuStrat –has shown that after 12 relative stable months, their residential VPI index displayed further indications of an early recovery in some of the areas it measures, signalling possible signs of a bottoming-out in property values across its coverage locations during the course of this year.
The ValuStrat Price Index (VPI) is a comprehensive data driven representation of the monthly price change experienced by typical freehold properties. The second quarter 2016 VPI displayed an overall 1.1% annual decline in values. However, the monthly growth rate of residential values has been broadly stable since July last year. April and May’s residential VPI registered 98.0 index points while June dipped slightly by 0.1% to 97.9 index points. Statistical analysis has shown further indications of an early recovery in some areas, signalling possible signs of a bottoming-out in property values across the VPI coverage locations during the course of the year.
With a clear 12 month trend of relatively stable sales prices, the general sentiment has been cautiously optimistic towards a recovery commencing in the second half of this year – Evidence from the market place also indicates that both investors and end-users are now doing deals on well located and correctly priced properties.
“…for the second quarter of 2016, DLD transaction volumes for the VPI coverage areas witnessed quarterly increases of 14% for apartments and 7% for villas…” added Haider Tuaima, ValuStrat Research Manager.
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