Text size:

  • Small
  • Normal
  • Large
Developers are feeling the pinch but landlords are doing better.
Randi Sokoloff Staff
Developers are feeling the pinch but landlords are doing better.

Prices drop for first time on record

Property sale prices have softened month-on-month for the first time on record, but landlords thrive.

Property sale prices have softened month-on-month for the first time on record, falling by 4 per cent in Dubai and 5 per cent in Abu Dhabi, while rental yields have grown, according to an HSBC survey. "Despite market tightness, Abu Dhabi prices appear to be down due to its heavy off-plan weighting," analysts said in the bank's monthly secondary-market survey of the UAE. "Nonetheless, the only development that is ready, Raha Gardens, was down 2 per cent month-on-month."

In Dubai, the villas and flats markets saw different trends. According to the report, advertised villa prices fell by 19 per cent from September after several banks reduced mortgage loan-to-value ratios in August and September. But average apartment asking prices in Dubai were flat, which analysts attributed to an increase in sales at high-end projects. The HSBC survey also found that for the first time since the first quarter of last year, rental yields expanded last month due to lower asset prices and seemingly tight supply. "Month-on-month implied gross yields increased from 4.7 per cent to 6.3 per cent. However, rental demand is likely to remain robust as we sense potential buyers are deferring their plans until there is better visibility in the credit markets," the survey said. ngillet@thenational.ae

Back to the top

More articles


Editor's Picks

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 A Brabus Mercedes 6x6 Sports Utility Vehicle is readied for display during Auto China 2014 in Beijing, on April 20. Adrian Bradshaw / EPA

In pictures: Auto China 2014 exhibition

Leading automakers have gathered in Beijing for the kickoff of China’s biggest car show, but lacklustre growth and environmental restrictions in the world’s largest car market have thrown uncertainty into the mix. More than 1,100 vehicles are being showcased.

 The New York Stock Exchange. Rising interest rates will shift momentum away from bonds and back towards risk assets such as stocks. Richard Drew / AP Photo

Plan ahead for rising interest rates

It is now over five years since the majory central banks slashed interest rates to record low but that is all about to change. So, how will rising interest rates affect you?

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National