Property prices in Dubai have softened by 5.6% as of October, with prices declining 1.2% month-on-month, according to new research.
Property Monitor, the real estate intelligence platform from Cavendish Maxwell which tracks the prices of a selection of apartment and villa/townhouse properties, said house prices in Dubai are expected to continue declining further until the end of 2018 and into the start of 2019.
There is increasing downward pressure on premium properties in particular, and the average transacted price for residential property across Dubai has been moving towards the under AED2 million ($540,000) mark, the report noted.
It added that in October, secondary market transfers for villas outpaced off-plan activity, as has been seen from November 2017 onwards.
However, for apartments, off-plan transfers continued to dominate, though the volume of transfers for under-construction apartments declined by 20% year-on-year.
House prices in the three months to October were 3.5% lower than the previous quarter, the report said.
According to the report, the average apartment price stood at AED1.9 million, down from AED2.1 million three years ago. It also said the average villa/townhouse price was AED4.9 million compared to AED5.6 million in September 2015.