(MENAFN- Khaleej Times)Dubai's property sector witnessed a further slowdown in values with 60 per cent of real estate agents reporting a drop in average sold prices over the past three months and only 13 per cent indicating an increase latest data shows.
A new survey of the Dubai real estate sector by Emirates NBD and produced by Markit revealed on Wednesday that softer market conditions were also reflected in the latest new buyer enquiries data. Some 54 per cent noted a decline over the past three months. Panellists linked this drop to greater caution among buyers and weaker underlying investor sentiment alongside the usual summer lull in transaction volumes. According to the survey findings majority of real estate agents expected property values to rebound in 12 months. The survey pointed to a rebound in confidence regarding the outlook for the next 12 months with the proportion of agents expecting a rise in average property values (45 per cent) outstripping the number forecasting a reduction (30 per cent). A majority of Dubai households (65 per cent) signalled that they continue to expect rising property values during the year ahead (against 17 per cent that anticipate a fall). "Positive trends continued on the lettings side of the market over the three months to August with real estate agents reporting both a rise in newly agreed rentals and increasing levels of new enquiries. Robust demand patterns in turn contributed to upward pressure on rents with the latest survey suggesting an especially strong increase in apartment rents" the bank said. Khatija Haque head of Mena research at Emirates NBD said the survey shows a further slowing in the residential real estate sector over the summer months. "While the slowdown is partly seasonal other factors including concerns about the economic outlook and US dollar strength have weighed on demand. However the lettings market remains robust both in terms of volume and price suggesting that population dynamics are supportive of the real estate sector." During the three months to August the headline Emirates NBD Dubai Average Sold Prices Index posted 26.7 down from 35.4 in June and below the neutral 50 threshold. The index for apartments (27 in August) remained above the equivalent reading for villas (24.3). The latest survey suggested that lower international new buyer enquiries were a key factor weighing on demand conditions. Measureoverall the rate of decline in new buyer enquiries was slightly faster than that seen in the previous survey period. Looking ahead however Dubai real estate agents signalled a rebound in confidence regarding property values for the next 12 months. At 57.6 in August the index was up sharply from 39.3 in June and the highest since the survey began in April. Some agents suggested that improved yields would boost investment demand over the course of the next 12 months. The survey found rising activity greater enquiries and increased rents in the letting sector. The survey of Dubai households broadly mirrored the rental price trends indicated by real estate agents over the same period. Among those that had experienced a rent renewal during the three months to August just over two-thirds (68 per cent) signalled a rise although this was a smaller proportion than that seen in the previous survey (74 per cent). Looking ahead among those with a rent renewal in the next three months just over half (51 per cent) expect a price increase while only 12 per cent anticipate a reduction. -
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