New figures show that property prices in the popular emirates of Dubai and Abu Dhabi are continuing to fall.
Having risen steadily over the past few years, following a recovery from the slump that engulfed the market in the wake of the global financial crisis, price growth has started to fall this year – although not at levels to spark fears of another crash.
According to the latest REIDIN index, residential property prices fell by 9.9 per cent in Dubai in the year to the end of August. Apartment prices fell by 10.4 per cent in this period, and villas by 8 per cent. On a month by month basis, prices fell by 0.75 per cent.
The prices falls were less steep in Abu Dhabi. There residential property values fell by 3 per cent year-on-year. Again, falling average apartment prices were the main driver of the decrease, falling by 3.7 per cent, while villas recorded a more modest drop of 2 per cent. Compared to the previous month, property values contracted by just 0.17 per cent – although villa prices were up by 0.14 per cent.