Marginal price decline in Dubai property prices in June is a 'sign of a healthy market', says Property Monitor.
28 July 2022, 12:00 AM
31 August 2022, 12:00 AM
Dubai property prices fell month on month for the first time this year in June, although they remained more than 10 per cent higher on an annual basis, according to a report by Property Monitor.
Prices declined by 0.31 per cent in June, compared with May, the second time they have fallen in the current cycle, the other time being in November last year, the report said.
However, The real estate market recorded AED 22.7 billion sales in June – highest sales figures in the last 13 years – and reaching almost 71 percent of the total 2021 sales volume, Dubai Land Department (DLD) data revealed.
The Property Monitor Dynamic Price Index, which tracks residential property price trends throughout 42 communities in Dubai, decreased by 0.45 index points to 142.25, from 142.70 in May.
In June, average property prices stood at Dh1,019 ($277.4) a square foot, the report said. They were last at these levels during the recovery phase of the previous market cycle between July and August 2013, it said.
"The slowdown and cooling of price appreciation should not be an immediate cause for concern at this stage, rather a welcome sign of a healthy market that can move forward at a sustainable pace whilst continuing to grow," the report said.
Lynnette Sacchetto, director of data and digital transformation at Allsopp & Allsopp said the Dubai real estate market has not disappointed this year with consistent growth month-on-month and quarter-on-quarter, despite global and local macroeconomic conditions.
“It is July and we have already reached 70.8 percent of total sales volume of 2021, which is significant to note. And I do not foresee these trends slowing down or shifting anytime soon,” Sacchetto said.