The two year-long slide in residential rent rates in Dubai appears to have come to an end while some neighbourhoods even show signs of recovery, according to a new report.
ValuStrat’s monthly report features analysis of multiple properties across 16 apartment and 10 villa locations in Dubai.
The April 2016 issue of the ValuStrat Price Index (VPI) shows the Dubai apartment market has shown a slight quarterly improvement in values, up 0.1% while the villa market saw values marginally decline by 0.2%
These slight price recoveries in a small number of districts have “added to possible signs of a bottoming-out in monthly values” across the 26 areas covered by the report.
Compared to the previous quarter, three locations saw appreciation in values. Motor City had the highest improvement of 1.5%, while Dubai Production City (formerly known as IMPZ) and The Greens saw an increase of just 0.7%.
With the exception of International City, which fell by 1% in value, all other apartment locations witnessed no drop in values.
Villas in Arabian Ranches saw values dip by 0.9%, Jumeirah Islands and The Meadows saw marginal negative changes while all other villa locations monitored by the VPI remained stable.
More end users are also seeking to get on the property ladder, anticipating long term capital appreciation while saving on monthly rental expenditure, the report added.