Dubai house prices hit plateau

House prices in Dubai are reaching a plateau as the city’s real estate market shows more signs of bottoming out, a new report shows.

The May 2016 ValuStrat Price Index (VPI) showed that there’s a “clear trend of a plateau” in Dubai’s residential prices, as forecasted in previous reports since last year.

The Dubai Land Department (DLD) has also reported minor price uplifts and an increase in transaction volumes in several locations across the city last month, adding to possible signs of a bottoming-out in monthly values across most of the 26 areas monitored for apartments and villas.

The villa market registered 96.7 points, down just 0.2 per cent since January, while the apartment market registered 98.8 points, up 0.3 per cent since January, according to the ValuStrat report.

Earlier this month, real estate company Asteco reported an increase in property price and sales transactions in Dubai’s “affordable” areas including International City, IMPZ and Jumeirah Village where interest from buyers pushed prices by 1 per cent.

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