Residential Market Overview
Data from the Dubai Land Department revealed that the number of residential real estate transactions dropped 30% in 2014 and that the value of residential property transactions fell by 14%. In addition, The REIDIN sales index showed a decline in residential price growth levels from 23% in 2013 to 20% in 2014.
The residential market is likely to remain passive over the coming months as the market is expected to absorb 25,000 additional units in 2015 making future residential supply for 2015 equate 6.6% of existing stock. Prime residential prices and rents are expected to contract in 2015; prices are expected to fall by 5% – 10% and rents to decline by 5%.