Athanasios Tsetsonis - Sector Economist
Published Date: 18 May 2017
Looking at the areas included in Phidar Advisory’s 9/5 Index, overall transaction volumes have fallen by -7.4% y/y in Jan-Apr 2017, mainly driven by the significantly lower transaction volumes on villas. With most of the activity in the high-range (or premium) segment for apartments and the standard segment for villas, affordability is still a constraint but there is demand for residential properties at the lower priced end of the market.
Rents in the Dubai 9/5 Index areas have declined at a slower pace on an annual basis in April, more or less aligned with the annual fall in sales prices. Apartment and villa rents were down in April by -9.0% and -9.4% y/y, respectively. Yields on apartments fell marginally in April at 7.4% averaging 7.5% in Jan-Apr 2017 compared with 7.8% in Jan-Apr 2016. Separately, yields on villas remained unchanged in April at 4.8% averaging the same figure both in Jan-Apr 2017 and Jan-Apr 2016.