Dubai property market starts to recover

The Dubai property market is showing the first signs of recovery in almost two years, according to the real estate consulting firm ValuStrat.

The market witnessed subdued sales activity in 2015, with Dubai apartment prices falling by 13 percent, and villas down 11 percent, according to JLL.

But the first quarter of 2016 saw “minute indications of an early recovery in some areas… signalling possible signs of a bottoming-out in property values,” ValuStrat said.

The ValuStrat Price Index (VPI) – which monitors property prices across 16 apartment and 10 villa locations in Dubai – showed a 3.5% annual decline in values.

However, the index edged up to 98.0 index points in February and March, from 97.9% in January, marking the first sign of improvement in almost two years, ValuStrat said.

“More end users are seeking to get on the property ladder, anticipating long term capital appreciation while saving on monthly rental expenditure,” it said in a statement.

Source