#Dubai home prices nearly stable, overall market still in decline | ZAWYA MENA Edition

Dubai home prices nearly stable, overall market still in decline | ZAWYA MENA Edition

The capital values of residential properties in Dubai appear to be stabilising, after years of steady decline, according to ValuStrat’s Price Index (VPI).

“Early last year, the property market fell markedly as the coronavirus pandemic halted mobility around the world. Today, the sector remains weak but there are reasons for optimism,” ValuStrat said.

ValuStrat’s valuation-based index for the emirate stood at a “stable” 65.3 points as of December 2020, showing an insignificant monthly fall of only 0.1 percent, the lowest rate of decline in three years. On an annual basis, the index posted a 13.8 percent decline over 2019.

Prices in villa communities posted some minor increases, owing to high demand from price-conscious buyers, while apartments in other locations continued to be in decline.

“Capital values of homes approached stabilisation at the end of 2020, as the downward trend of recent years currently appears to be coming to a gradual end,” the consulting firm said.