Despite more buyers entering the market, a boom in new home construction across Dubai has continued to water down home values in the third quarter of 2019. This is something that is happening throughout the entire Middle Eastern financial capital.
Home Values Are Still Falling In Dubai
Compared to this time last year, the average sale price of a single family home in Dubai has fallen by 15%. This is according to a report by property consultants Cavendish Maxwell. The home values of apartments also dropped. The average price of an apartment in Dubai declined by 16.5% during the same quarter.
There has been a lot of new home construction projects being carried out in the lead up to Dubai 2020 and this has watered down the market. According to Cavendish Maxwell, developers have had to develop payment plans and drop their prices in order to attract buyers. However, this does mean that home ownership in Dubai is now a lot more attainable than it has been in previous years. With decreasing home values and more long term residency options for those coming from overseas, more people are able to buy property in Dubai.
Aditi Hariharan, a Senior Consultant at Cavendish Maxwell, said: “A prolonged softening in prices and rents has made real estate more accessible to and affordable for owner-occupiers and tenants. The positive impact of the move is already evident with real estate transactions in Dubai more than doubling since the announcement of the committee.”