Property prices in Dubai Marina have dropped by as much as 18 per cent over the past three months, according to the classifieds website Dubizzle.
The company’s second-quarter report shows that sale prices for a studio apartment fell by 18 per cent in the Marina to Dh900,000, while three-bed properties dropped in price by 14 per cent to Dh3.6 million.
Rents in the area, which remains the most searched for community in Dubai, have fallen by 7 per cent for three-bedroom properties to Dh213,000 per year.
Meanwhile, prices in some of Dubai’s older communities such as Deira have increased as renters have sought cheaper options in the city and no new stock has been built in these areas.
• Where Dubai rents have risen and fallen, second quarter of this year
The rent for a studio apartment in Deira has increased by 18 per cent to Dh65,000 (the same as in Bur Dubai) and three-bedroom apartments have risen by 5 per cent to Dh158,000.
In Abu Dhabi, rents and prices have increased across the board apart from Al Reem Island, where there was a decline in sales prices for two and three-bedroom apartments. Two-bedroom apartments dropped in price by 2 per cent to Dh1.96 million, and three-bed units fell by 5 per cent to Dh2.8m.
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Rents at Saadiyat Island increased by more than 10 per cent, with a three-bedroom property costing an average Dh210,000 to Dh240,000.
Musaffah East, encompassing Mohammed bin Zayed City and Khalifa City, remains the most affordable area in Abu Dhabi to rent.
However, even here prices increased by up to 13 per cent. A one-bedroom apartment in Khalifa City A costs 11 per cent more at Dh55,500.
“The Dubai property market is softening, while older areas in Dubai showed price increases in reflection to a maintained level of demand,” said Ann Boothello, product marketing manager for dubizzle. “An example of this is that now a studio in Bur Dubai is rented out for Dh65,000 annually and in Dubai Marina at Dh70,000.”
• Where Abu Dhabi rents have risen and fallen, Q2 2015
“Prices of properties for sale decreased across Dubai, with the exception of studios and two-bedroom apartments on the Palm Jumeirah increasing up to 6 per cent,” she added.
“Abu Dhabi, on the other hand, experienced price increases in for sale and rent properties.”
The top five areas where people were looking for property to buy in Dubai during the first six months of the year were Dubai Marina (which attracted 20 million searches), followed by International City (16 million), JLT (13 million), Downtown Dubai (7 million) and Arabian Ranches (4 million).
In Abu Dhabi, the most popular areas for buyers were Al Reem Island (2 million searches), Gate District (2 million), Tamouh’s Marina Square (900,000), Al Ghadeer Village (900,000) and Shams Abu Dhabi (500,000).
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