Capital values for completed apartment units fell nine per cent year-on-year, with the highest drop registered across prime developments, which had seen a substantial rise in rate of sales since the second half of 2013. On the supply front, around 2,000 new units were completed in the quarter, mostly in leasehold areas.
The total value of residential apartment transactions fell by 8.6 per cent quarter-on-quarter, from AED 4.62 billion in Q2 2015 to AED 4.22 billion in Q3 2015. This is in line with past trends, with the third quarter of the year tending to be a relatively quiet period for the real estate market because of the peak summer and holiday season.
Controlled supply of new office space, coupled with continued positive occupier sentiment, is helping to maintain Dubai’s healthy rental and occupancy levels in the office market. The Dubai office market remained stable quarter-on-quarter despite a rise in new stock, as demand for office space continued to show an upward trend, mainly from start-up companies. Prime Central Business District (CBD) rents ranged between AED 110-220 per sq.ft. per annum while secondary locations have recorded rents ranges between AED70-200 per sq.ft. per annum.
Dubai’s retail sector witnessed a marginal drop in footfall and spending during Q3 2015, with a number of major retailers reporting slower sales year-on-year. This could be largely attributed to a fall in spending by tourists, who are key drivers of demand.