Strong Residential off-plan sales in Q1 does not translate into Q2
Date: 16 July 2017
Sales of off-plan properties in Q2 witnessed a sharp decrease in volume and value by a two digit percentage.
The strong Q1 off-plan sales momentum did not seemingly translated into Q2. Ramadan, the beginning of the summer heat and global uncertainty are seen as the main drivers for the Q2 slow down.
As often seen in the past, Dubai Marina, DIFC, Emirates Hills, the Palm have kept a similar sales level year on year, confirming their star as the strongholds of the Dubai real estate residential market.
Business Bay and Dubailand residential sales price and rental price have suffered a downward due to new supply of stock during Q2.
Price of villas in the Palm and Emirates Living and Victory Heights area has seen sign of price increase against Q1, on an average percentage of 5%.
Expectations for the second half of the year are optimistic and a similar feeling is there on the medium term as we get closer to the Dubai 2020 Expo event.
Looking at the Q1 and Q2 sales and rental figures it shows that the more stable sub-markets are able to support property appreciation and that the generation of yields are coming from the completed projects in the most stable areas of the city, such as Dubai Marina, The Palm, Emirates Living and DIFC.