As we enter the final quarter of 2017, a year in which most market players expected the Dubai residential market to bottom out, there remains a clear lack of direction. Despite
higher year-on-year transaction volumes, uncertainty and concerns of oversupply have produced divergent sale price trends and further market fragmentation between performing and non-performing communities.
Widespread drops in rentals have resulted in further yield compressions across multiple districts. Most prime and upper mainstream core locations remain healthy on the back of a maturing market segment and a relative balance between offer and demand. The lower segment, however, has witnessed a slew of handovers and new off-plan launches, which have escalated in the past few quarters. Downward pressure on rents may increase in this segment in the mid-term as prospective demand among tenants for these units remains uncertain.
In a fast-changing market, this quarterly update charts transaction volumes and identifies drivers of supply and demand in secondary and off-plan segments, revealing indicative trends in their impacts on market performance.
Source : Core Savills