- Annual house price growth softens 5.6%
- Average house price now AED 2.81m
Property Monitor, a real estate intelligence platform from Cavendish Maxwell, has just released its Dubai House Price Index for October 2018. The index tracks the prices of a selection of apartment and villa/townhouse properties since September 2015.
The report indicates that annual house price growth in Dubai has softened by 5.6% as of October 2018, with prices declining 1.2% month-on-month – a slight fall of 0.3% compared to the monthly change in October of the previous year.
House prices in Dubai are expected to continue declining further until the end of 2018 and into the start of 2019. There is increasing downward pressure on premium properties in particular, and the average transacted price for residential property across Dubai has been moving towards the ‘under AED 2 million’ mark.
In October, secondary market transfers for villas outpaced off-plan activity, as has been seen from November 2017 onwards. However, for apartments, off-plan transfers continued to dominate, though the volume of transfers for under-construction apartments declined by 20% year-on-year.
The annual change in house prices registered a decline of 5.6% in October, compared to a 4.6% decline in August 2018. House prices in the three months to October were 3.5% lower than the previous quarter.
According to the House Price Index, apartment and villa/townhouse prices have declined by 11% and 13% respectively. The average apartment price stood at AED 1.9 million, with the average villa/townhouse price being AED 4.9 million in October 2018, compared to their prices of AED 2.1 million and AED 5.6 million in September 2015.
The Dubai House Price Index is produced by Property Monitor, a product of Cavendish Maxwell – one of the UAE’s leading property consultancies – and was developed in response to a need for greater market transparency.