Prices were reduced by 10% of sellers
According to LuxuryPriceDrops prices have reduced about 10% of sellers. The correction affected more than 2.8 thousand objects with a total value of about $463 million, reports Prian.
The strongest pressure is felt in new neighborhoods, where investors massively bought apartments at the construction stage in the hope of quickly reselling them more expensive. Now some of the owners are trying to urgently withdraw from the projects: demand has become weaker, and payments on the objects – heavier.
Some objects have fallen in price by 50% at once, although market participants call such cases rare. According to them, it is more often about problematic or initially overvalued projects.
Demand for housing fell by 20%
At the same time decreases the activity of buyers. In March, real estate sales in Dubai fell by almost 20% compared to February. Transactions with objects under construction decreased by 14% in annual terms. In April, the market has slightly revived, but the volume still remains about a fifth below last year.
According to ValuStrat, the most notable year-on-year price declines were recorded in the neighborhoods of Lebanon (-11%), Port Rashid (-10.8%) and Maritime City (-10.1%).
In the central and most sought-after locations, the decline is softer. In Palm Jumeirah prices decreased by 7.1%, in the center of Dubai – by 6.2%.
Despite the correction, analysts do not consider it a crisis. Most of the properties are still not getting cheaper, and the interest of international investors is still tangible.
