Property prices in Dubai stabilised in the fourth quarter of 2009 and transaction levels are also improving, according to a new report.
Sales prices for apartments and villas in completed developments across the emirate improved according to the latest data from property services company Asteco. A better economic outlook and better mortgage availability has helped, it says.
In 2009, the average sales price in Dubai stood at AED950 per square foot for apartments, down 16% since the first quarter, and AED1,000 per square foot for villas, down 9% since the start of the year.
Business Bay and International City saw the largest decrease in apartment sales prices since the first quarter, having fallen 23%, Asteco added. In Green Community and Palm Jumeirah prices remained stable with no change since the beginning of the year.
In the villa market, Jumeirah Park experienced the highest drop in sales value since the first quarter of 2009 at 34%, followed by Arabian Ranches, down 29%. Palm Jumeirah and Springs recorded positive growth with 20 and 21% respectively, the report added.
Overall property in Palm Jumeirah is holding its value well and Downtown Burj Dubai, Dubai Marina, Jumeirah Beach Residence, Springs and Arabian Ranches, the report indicates.
‘Lifestyle communities are weathering the storm and the Palm Jumeirah is an iconic development and, with continuous improvement of infrastructure and completion of residential and hotel developments, has become a sought-after destination,’ said Asteco chief executive Elaine Jones.
The report also shows the decline in Dubai rental rates which have fallen by 24% for apartments and 18% for villas on average during 2009. However, compared with the third quarter of 2009, the decline in rental rates slowed in the last quarter with overall decreases of 2% for apartments and 1% for villas.
‘Sought-after developments include Downtown Burj Dubai, Palm Jumeirah and Dubai Marina as well as Arabian Ranches and Springs as they offer residents an abundance of retail and leisure facilities and are in prominent locations,’ the report said.
