x Abu Dhabi, UAEFriday 28 July 2017

Dubai villa prices up as market stabilises

The price of villas in Dubai rose 8 per cent in the third quarter, while apartment prices fell just 3 per cent.

The price of villas in Dubai rose 8 per cent in the third quarter, while apartment prices fell just 3 per cent compared to a 17 per cent drop in the second quarter, according to a report by Landmark Advisory. The report said that villas accounted for 60 per cent of sales in the latest quarter, with Landmark predicting that prices will remain stable in the short-term. "If investor confidence and inventories are stabilising, then we may have possibly reached a price floor for villas," said Jesse Downs, director of research and advisory services at Landmark.

"Apartment inventories remain stable, with the majority of sellers holding prices, and because many distressed sales that were available over the past three to six months are no longer available." Leasing rates for villas in the emirate increased 6 per cent, in line with sales trends, it said. "This is due to considerable demand during the summer months, primarily from relocation within the UAE, but also from a limited amount of new demand from expatriates moving from abroad," added Ms Downs.

Meanwhile, rental rates for apartments in Dubai dropped 17 per cent during the quarter, while office prices fell 10 per cent. agiuffrida@thenational.ae