After a drop for seven consecutive quarters, Dubai’s overall sales market has finally witnessed a marginal 1% quarter-on-quarter rise in sales prices in Q2 2016. This slight recovery may be due to the higher closures that we witnessed during Ramadan, in anticipation of lower activity levels by the onset of summer. However, despite the traditional perception of a dampened buyer sentiment in summer, we saw the spike in both enquiry and activity levels of June continue over to July.
The growing pool of investors and end users who have been waiting on the sidelines for the last few quarters for sales prices to find their new floor are slowly going ahead with
their buying instructions as the prices have hit a plateau across most of Dubai’s submarkets and are showing resistance to further drops. Furthermore, landlords who wish to sell in this bottoming market are also keeping realistic reserve prices, thus bridging the gap and pushing transaction volumes up.
Source : Core Savills