Majority of real estate agents (atleast 47 percent) are expecting a dip in real estate values this year, while 32 percent are seeing a rise, said a report.
According to real estate agents, there was subdued end at 2015 for the property market in Dubai, as majority of survey respondents noted decline in fresh buyer enquiries and transactions over the past three months until December 2015.
The real estate agents have linked the fall to weaker investment sentiment and muted underlying market conditions.
According to survey respondents, the market conditions would favour buyers over the next one year, as volumes of construction are likely to remain strong, while there is uncertain economic outlook that acted as a brake on investor demand.
The survey, which was carried out in December, also indicates weaker trends on the rental market, with new rental enquiries dipping for the first time since the survey began in April. This has also contributed to minor fall in new rental transactions by end of 2015, apart from slow rise in new rental prices in the short survey history.
According to Emirates NBD Real Estate Tracker, Khatija Haque, also the Head of MENA Research at Emirates NBD, the strong US dollar and low oil prices will remain headwinds for real estate sector in 2016.
The survey respondents indicate soft fall in property values for both villas and apartments at end of 2015, while transaction volumes also dipped, although at a slower pace in December.
However, in contrast to the downbeat expectations by real estate agents, the latest data indicates that Dubai homes are very optimistic about property values during the year 2016. Around two-thirds of Dubai households are expecting rise in property value during the next one year, while only 14 percent are forecasting reduction.
Real estate agents have however, indicated another marginal dip in new letting activity during the three months to December, with stable demand for apartments, offset by a marked dip in the number of villa rentals.
But, contrary to the trends expected by real estate agents for newly agreed lettings, Dubai households reported slowest rise in rent renewal prices in the short survey history. People in apartments are more likely to report a rise in rental prices, than those in villas.
Also, contrary to the trends expected by real estate agents for newly agreed lettings, the Dubai households are expecting high rent renewal prices in next three months, with 62 percent expecting growth in rent renewal price in next three months, while only seven percent are expecting to negotiate a reduction, the report said.