Property market in Dubai stabilises but still declining in Abu Dhabi

Property market in Dubai stabilises but still declining in Abu Dhabi

The residential real estate market in Dubai is showing signs of having bottomed out with the latest sales and price figures moving into positive territory in February.

The Dubai residential property sales price index from ReidIn increased by 0.3 points, an increase of 0.10% month on month and prices are now 0.97% higher year on year.

Apartment prices rose by 0.12% month on month and 1.06% year on year while villa prices were up 0.06% month on month and 0.59% year on year.

But rents are still falling. The rental price index decreased by 0.8 points with rents down 0.9% month on month and down 3.69% compared to February 2016.

Apartment rents fell by 1.04% month on month and 2.89% year on year while villa rents were down 0.1% month on month and 7.86% year on year.

In neighbouring Abu Dhabi the property market is still declining. The ReidIn price index fell by 0.9 points with prices down 1.18% month on month and 6.23% year on year.

A breakdown of the figures show that in Abu Dhabi prices for apartments fell by 1.12% month on month and 5.86% year on year while villa prices decreased by 1.31% on a monthly basis and 7.39% annually.

In the lettings sector the rental index decreased by 0.7 points with rents down 1.16% in February compared to January 2017 and down 8.59% year on year.

Apartment rents fell by 1.3% month on month and 9.81% year on year while villa rents were down 0.82% month on month and 4.81% year on year.

Meanwhile, a new analysis shows that Dubai real estate assets have given a 120% return to investors in the 10 years since the global financial crisis. As a result of the crisis many projects in Dubai stalled or were cancelled.

But now the property market in the emirate is recovering having been boosted by a number of Government investments and the awarding of Expo 2020 to Dubai, says the ReidIn Global Capital Partners report.

The 120% return compares to 75% in London and 63% in New York and the report explains that the bulk of the returns in Dubai have been through rental increases.

‘Dubai has become a magnet for international investors for real estate, and monetary inflows have continued to increase steadily over the last decade,’ it concludes.

Housing market confidence rises in the US, but is down on a year ago

Housing market confidence rises in the US, but is down on a year ago

Most households in the United States believe the spring season is a good time to buy a home but those in the rental sector are less confident, new research shows.

Some 80% of home owners are positive about the market, up from 78% in December 2016 but down from 82% a year ago, according to the research from the National Association of Realtors.

But just 56% of those who rent think it is a good time to buy, down slightly from 57% in in December 2016 and down from 62% a year ago.

Overall, younger households, renters and those living in the costlier West region where prices continue to rise, are the least optimistic, the study also found.

NAR chief economist Lawrence Yun pointed out that a lack of homes for sale, prices and rising mortgage rates are putting people off. ‘These factors are giving many renter households a pause about it being a good time to buy, even as their job prospects improve and wages grow,’ he said.

‘Unless there’s a significant boost in supply levels this spring, these constraints will unfortunately slow or delay some prospective buyers’ pursuit of purchasing a home,’ he added.

One promising trend that could alleviate supply shortages is a rise in the share of respondents this quarter who believe now is a good time to sell a home. Sone 69% of home owners think now is a good time to sell, up from 62% in the December quarter of last year and up from 56% in March 2016.

Continuing the trend over the past year, those in the West continue to be the most likely to think now is a good time to sell with 77% saying so and they are also the least likely to think it’s a good time to buy at 61%.

‘Demand far outpaces supply in many parts of the country right now, which means home owners will likely sell their home much quicker than the time it takes to buy another,’ said NAR president William Brown.