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News Release

Dubai

Dubai Residential Market showing "Signs of Stabilisation"

according to JLL MENA’s Q2 2009 Dubai Residential Market Snapshot.


​​​The Dubai residential real estate market is showing signs of renewed confidence as transactional volumes remained stable between Q1 2009 and Q2 2009 according to JLL MENA’s Q2 2009 Dubai Residential Market Snapshot.

While average asking prices have continued to fall (by around 24% in Q2). The rate of decline in achieved prices has been lower at just -6% resulting in a convergence between asking and achieved prices. There has also a lower rate of rental decline than before, with the average rent for two bedroom apartments falling by 15% in Q2, compared with a 22% decline in Q1 2009.
 
New residential supply continues, with 22,400 residential units expected to be handed over in 2009, in spite of over $24 billion worth of residential projects being put on hold or cancelled.
 
On the demand front, transactional volume remained stable between Q1 2009 and Q2 2009 in comparison to the 58% decrease between Q2 2008 and Q2 2009.
 
Craig Plumb, Head of Research at JLL MENA​ added:
 
“The stabilisation of transactional volumes is an important indicator, which reflects improved confidence among investors. The narrowing gap between asking prices and achieved prices is a further indication that the market is beginning to stabilise, albeit at significantly lower levels of pricing than those seen earlier in the year."
 
“While there have been a large number of projects delayed or cancelled, there remains a significant level of new supply, with around 22,400 residential units expected to be completed across Dubai in 2009.”