Dubai’s residential real estate market is showing signs of stability with price declines slowing during the third quarter of 2019, according to JLL.
JLL’s latest UAE Market report revealed marginal declines of just 1 percent in both apartment and villa rents and sale prices in Dubai in Q3.
It also showed that apartment sale prices actually increased by 1 percent over the quarter.
JLL said it expects prices and rentals will remain largely unchanged in the Dubai residential market over the next 12 months.
According to the report, retail rents in Dubai remained stable over the quarter but softened across all mall categories compared to last year.
Market-wide vacancies are estimated to have increased to 19 percent in Q3 from 16 percent this time last year.
“Given the level of upcoming supply, coupled with evolving consumer tastes and the rapid proliferation of disruptive technologies, JLL expects rents to remain under pressure over the next year,” JLL said in the report.
It added that Dubai’s hotel market recorded a softening of performance during Q3, with average daily rates down 13 percent compared to last year.
In neighbouring Abu Dhabi, the report said the hotel market maintained healthy performance levels over the past quarter associated with the recent government initiatives aimed to promote tourism within the capital.
Abu Dhabi has continued to focus on boosting visitor numbers and overall investment in the tourism sector through a series of high profile events, conferences and activations during the past quarter.
“The introduction of new events and initiatives, combined with an emphasis on key global markets and a drive to generate additional business from within the UAE is strengthening Abu Dhabi’s tourism strategy,” said Peter Stebbings, head of JLL office in Abu Dhabi.
“The hotel market has continued to maintain healthy performance levels and as we look ahead, we expect the hotel sector to continue to perform strongly in Abu Dhabi over the last quarter, particularly with the upcoming annual Formula 1 Etihad Airways Abu Dhabi Grand Prix. Other planned government events that are intended later this year will also increase tourism in the city.”
Source: Arabian Business