Dubai property prices, rents may not rebound until 2018

Residential property prices continued to fall during the first half of 2016, with values expected to decline further until the end of 2017, according to a new report.

Phidar Advisory’s latest Dubai residential research note said “soft demand” was behind the latest price drops rather than supply which has expanded slowly over the past 30 months.

During Q2, apartment lease rates declined 2.2 percent, while sale prices declined 3.7 percent, pushing gross yields up to 7.9 percent, according to Phidar House Price Index.

Lease rates for villas decreased 3.6 percent and sale prices declined 1.1 percent, which pushed yields down to 4.7 percent, it added.

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