DUBAI, 26 July – For the first time this year, property prices in Dubai fell in June, while remaining 10 per cent higher on an annual basis, a report by Property Monitor said.
According to the report, prices in the city declined by 0.31 per cent in June 2022, compared to May, the second time they have fallen in the current cycle since prices recorded a fall in November 2021.
The Property Monitor Dynamic Price Index, which tracks residential property price trends throughout 42 communities in Dubai, decreased by 0.45 index points to 142.25, from 142.70 in May.
In June, Dubai recorded an average property price of Dh1,019 ($277.4) per square foot. The last time prices were at these levels was during the recovery phase of the previous market cycle between July and August 2013, Property Monitor said.
“The slowdown and cooling of price appreciation should not be an immediate cause for concern at this stage, rather a welcome sign of a healthy market that can move forward at a sustainable pace whilst continuing to grow,” it added.
June 2022 was the second strongest June recorded in terms of property transactions as it reached 8,865 transactions according to the index. This makes it a 34.2 per cent and 38.8 per cent increase on a month-on-month and year-on-year basis, respectively.
The total value of the property sales in Dubai in June climbed by 55 per cent to Dh22.7 billion, according to official data by Dubai Land Department. As of July 1, a staggering 70.8 per cent of the total sales volume recorded in 2021 has been reached.
Government initiatives in the UAE, such as the expansion of the 10-year golden visa programme and new types of residence permits for retirees and remote workers, have contributed to property price increases in recent months, while the swift and effective Covid-19 vaccine campaign has made the country a safe haven for investors.
Source: The National News/Arabian Business/Agencies
