Dubai real estate prices fall for the first time in 2022

Dubai’s real estate sector has seen record-breaking transactions in recent months, with price growth consistently up month-on-month.

But June bucked the trend when property prices fell by 0.31 percent – the first time it went down this year, according to Property Monitor.

Dubai property values now stand at AED1,019 per square feet, the report said, noting the downward movement “should not be an immediate cause of concern at this stage.”

“The Dubai property market’s resilience in the face of rapidly rising interest rates, inflation that seems to be on a runaway, and the strength of the Dirham due to the US dollar peg continues to wondrously amaze and battle any headwinds and downsides risks thrown at it,” the real estate intelligence company’s chief Zhann Jochinke said.

The report showed growing volume of transactions, reaching 8,865 sales in June, or a 38.8 percent increase year-on-year. Residential transactions led the increase, representing 89.3 percent of the total transactions.

Commercial property transactions were led by hotel apartments at 4.1 percent, land sales at 2.7 percent, and office at 2.6 percent, the report showed.

Average gross rental yields also performed well in June, rising to 6.3 percent – the highest level since October 2019. Yields for townhouses rose from 5.4 percent to 5.51 percent, while yields for apartments grew from 0.7 percent to 6.82 percent.

The report projects further growth in rental yields over the coming months, as the pace of sale price appreciation slows.

Credit & Source: https://www.arabianbusiness.com/money/wealth/money-wealth-real-estate/dubai-real-estate-prices-see-first-decline-of-the-year-in-june-report