Monday 18 February 2019

Dubai's villa rents witness biggest decline

DUBAI, June 24, 2018

Villa rents in Dubai have witnessed the biggest decline in asking prices of all property types, compared to apartments or villas in other emirates. However, the declines appear to be slowing, said a report.

For renters, The Villa, a community of Spanish-style homes southeast of Downtown near Silicon Oasis, made its debut on the top of the affordability ranking, according to data from Propertyfinder Group.

There was a 13 per cent drop in asking prices which fell to Dh34 per sq ft over the last 12 months. Declines were a bit steeper in Al Furjan, down 16 per cent in the last year, and ranked second in affordability, it stated.

With a reputation for luxury, those who call Dubai ‘home’ often have more modest needs, especially if there is a family to support, said Propertyfinder which rounded up the top 5 least expensive communities in Dubai to rent or buy a villa, so that those looking in time to make a move before a new school year starts can take an informed decision, or those looking for a strong investment opportunity can make an informed choice.

There have been a total of 1,362 secondary villa/townhouse transactions so far this year, remaining steady compared to the same period in 2017.

Transactions will most likely continue to maintain a steady, consistent pace in the secondary market, remarked Lynnette Abad, the director of data and research at Propertyfinder Group.

Demand in affordable areas is rising, as are handovers. This means prices are going down as new stock becomes available, and Dubai residents are getting a bargain to boot it stated.

"Although prices are still declining, consumers are staying on the fence whether to buy now or wait, as the large down payment needed to purchase a property continues to be a hurdle for most end-users," noted Abad.

According to Abad, once the legislation on the new 10-year visa and 100 per cent ownership of foreign companies legislation is formally released in H2 and all details are known, this will certainly have an indirect effect on the real estate industry.

Looking ahead to what’s to come for the second half of 2018, she said the legislation will likely give expats confidence to invest in property locally due to the assurance they can remain in the country for a longer period of time.

Consistent with the trend which began last year, sale prices are still considered affordable within the secondary villa/townhouse segment, with 51 per cent of transactions below Dh2 million, noted Abad.

Al Furjan, Jumeirah Village Circle, and The Villa appear on both lists, and are worth a look as family-friendly options with lots of brand new units to their name: a high rate of handovers, central locations with short commutes, and family-friendly, she added.-TradeArabia News Service

Tags: Dubai | apartments | villa rents |

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