Property prices in Dubai surge but rents slump
Real Estate

Property prices in Dubai surge but rents slump

CBRE Group, a real estate investment firm, announced on Thursday that average residential property prices in Dubai rose 4.4% in the year to August, the highest annual increase since February 2015.

However, a continued drop in rents signalled that the long-struggling sector would continue to struggle. According to CBRE, Dubai rents continued to fall in the year ending in August, falling by 2.7% on average.

The luxury segment of Dubai's property market has seen a boost following a sharp downturn caused by Covid-19, according to Reuters, but recovery is still a long way off.

The United Arab Emirates' long-term economic trend had been sluggish since the 2014 to 2015 oil price crash, even before the pandemic. For years, supply has outpaced demand for new houses and apartments in a market dominated by foreigners, many of whom left during the pandemic.

According to CBRE data, the market continues to favour villas over apartments, with prices remaining well below historic highs. While apartment prices rose 2.5% and villa prices rose 17.9% in the year to August, they were still 30.4% and 20.5% below their 2014 highs.

In August, average apartment rents fell by 5.2% year over year, while average villa rents rose by 15.5%, the highest growth rate on record for the segment.

The occupancy rate in the office market has increased, rising to 28.8% in the third quarter of this year from 77.1% the previous quarter. In the third quarter, average rents in the prime and Grades A to C categories fell between 4.1% and 6.5% year over year.

New entrants, such as international and local technology firms, fintech firms, and Chinese companies, have put downward pressure on prices, according to CBRE. Prime and Grade A offices are in high demand from them.

Image Source

Also read: Maharashtra property registration revenue at Rs 7,507 cr in Q2

CBRE Group, a real estate investment firm, announced on Thursday that average residential property prices in Dubai rose 4.4% in the year to August, the highest annual increase since February 2015. However, a continued drop in rents signalled that the long-struggling sector would continue to struggle. According to CBRE, Dubai rents continued to fall in the year ending in August, falling by 2.7% on average. The luxury segment of Dubai's property market has seen a boost following a sharp downturn caused by Covid-19, according to Reuters, but recovery is still a long way off. The United Arab Emirates' long-term economic trend had been sluggish since the 2014 to 2015 oil price crash, even before the pandemic. For years, supply has outpaced demand for new houses and apartments in a market dominated by foreigners, many of whom left during the pandemic. According to CBRE data, the market continues to favour villas over apartments, with prices remaining well below historic highs. While apartment prices rose 2.5% and villa prices rose 17.9% in the year to August, they were still 30.4% and 20.5% below their 2014 highs. In August, average apartment rents fell by 5.2% year over year, while average villa rents rose by 15.5%, the highest growth rate on record for the segment. The occupancy rate in the office market has increased, rising to 28.8% in the third quarter of this year from 77.1% the previous quarter. In the third quarter, average rents in the prime and Grades A to C categories fell between 4.1% and 6.5% year over year. New entrants, such as international and local technology firms, fintech firms, and Chinese companies, have put downward pressure on prices, according to CBRE. Prime and Grade A offices are in high demand from them. Image Source Also read: Maharashtra property registration revenue at Rs 7,507 cr in Q2

Next Story
Real Estate

Häfele unveils Profin aluminium profiles for modern kitchens

Häfele has launched its Profin range of aluminium profiles, designed to enhance open kitchen layouts gaining popularity in urban homes. With shrinking living spaces and the rise of micro-living, kitchens are increasingly becoming integral parts of living areas. This demands cabinetry that is both functional and visually seamless. The Profin range offers a modern solution, combining aesthetics with precision engineering. It includes four product categories—Gola Profiles, Stack Modular Shelving, Rail Door Profiles, and Strike Shelving System—catering to varied functional and design nee..

Next Story
Resources

CIPL to invest Rs 4 billion in phosphoric acid plant

Caitlyn India (CIPL) will invest Rs 4 billion to set up a 50,000 TPA integrated phosphoric acid plant in southern India. The company is scouting port-accessible sites and plans to commission the facility by FY 2027. The project will span 30–50 acre and aims to reduce India's dependency on imported phosphoric acid. The plant will adopt hemihydrate–dihydrate (HH-DH) technology, enabling high-purity phosphoric acid production with cleaner gypsum by-products. A captive sulphuric acid unit will be included for operational efficiency. Initially, output will be supplied to domestic fertilise..

Next Story
Equipment

TKIL Industries, HOPPECKE partner for rail battery systems in India

TKIL Industries (formerly thyssenkrupp Industries India) has signed an exclusive agreement with Germany-based HOPPECKE Batterien GmbH & Co. to develop battery systems for India’s growing rail sector. The partnership aims to deliver innovative and sustainable energy storage solutions for metros, regional trains, and locomotives. The first joint project under this strategic alliance has already been secured and is expected to roll out in 2025. The collaboration comes at a time when India plans to double its electric locomotive capacity by 2030 and expand metro services from 23 to 31 c..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?