Bulletin: Q3 2017 Dubai & Abu Dhabi property stats

Property prices and rents continue to fall in Dubai and Abu Dhabi as we move into November 2017 – including a 12-month slide of more than 7% for some Dubai rentals as extra supply keeps a lid on the market.

Dubai property & rental stats Q3 2017

The Dubai Residential Property Sales Price Index fell 1.5 points in September against the previous month. This represents a decline of 0.59% against August and 1.97% down against September last year, REIDIN, the property statistician, found in its latest snapshot report.

Villa prices were up 0.28% against August (442.6 against 441.3) but down 0.91% over 12 months. The two year fall has been steeper – down 3.2% against September2015.

Rental rates are also softening. The Dubai Residential Property Rental Price Index was down almost one point to 91.1, which is down 0.96% against August and a substantial 6.32% year-on-year.

Apartment prices were down 0.79% month on month, representing an index fall to 230.9 compared to 232.7 in August. Apartment prices have fallen 1.61% over 6 months, 2.23% over a year and 3.84% over two years. Only February, May and June this year have seen minor price rises relative to the previous month.

Apartments were down 6.07% in the last 12 months (down a further 0.85% against August), while villa rents were down 7.74% in a year. Those 12-month declines contribute to rental price falls of 10.03% for apartments in the last two years, and 14.01% for villas over the same period.

Gross rental yields – landlord income relative to the price of their property – remained largely steady month on month, falling for villas to 5.3% against 5.4% in August. Price-to-rent jumped to 19.5 points from 19.2 for villas at the same time.

Falls in property prices are relative to a 2.38% rise in the gold index, and 7.74% rise in the oil index.

Abu Dhabi property & rental stats Q3 2017

The Abu Dhabi Residential Property Sales Price Index is down one point, which is 1.1% against August. Prices have fallen 9.29% in a year.

Rental prices across the board are down 10.7% since last September until today.

Apartment sales prices are down 1.35% for the month and more the 9.5% over 12 months, the statistics show. In the last two years, apartments have fallen 10.3%.

Villa prices fell 0.28% and 8.63% for the month and year, respectively. Villas have reduced by more than 12.6% in two years.

The Abu Dhabi Residential Property Rental Price Index was down 0.73% against August, and off 10.7% over 12 months.

Apartment rentals are down more than 11.2% in a year, and 16.3% over two years. Villa rents have also fallen 8.76% in a year, and by 9.74% over two years.

Rental prices of all property types are down 15% over two years. Gross rental yields are steady, with a slight upturn for apartments.

(REIDIN’s indices are based on moving-average median prices which is a common method for giving a picture of property prices.)

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