Residential sales prices in Abu Dhabi and Dubai fell in February, but the partnership between Aldar Properties and Emaar Properties will buoy the market, according to a new report by property data provider Reidin.
Abu Dhabi sales prices plunged 7.9 per cent year-on-year in February and 1 per cent month-on-month, according to Reidin's residential price indexes for Abu Dhabi and Dubai. In Dubai, sales prices fell 4.1 per cent year-on-year and 0.3 per cent month-on-month.
“Overall market conditions in the UAE have remained stable when we compare total sales transaction volumes in February 2018 with same term last year,” said Reidin’s operations and research director Ozan Demir. “Recently, the UAE’s two major developers Emaar and Aldar announced a partnership to launch Dh30 billion worth of iconic and lifestyle projects locally and internationally. This attests the UAE Government’s ambitions in strengthening real estate regulations and adding economic value to the country.”
The UAE’s property market has softened in the past few years on increased supply, job cuts, reduced housing allowances and weaker economic growth sparked by low oil prices. But a rebound in the price of oil and slower delivery of units is helping the market recover.
The recent partnership between Aldar and Emaar also signals a greater co-operation between property developers from different emirates, a move that will bolster the real estate market.
In Abu Dhabi, apartment sales prices dipped 9.1 per cent year-on-year in February, while villa sales prices fell 4.1 per cent.
In Dubai, apartment sales prices decreased 4.1 per cent year-on-year in February, while villas sales prices dropped 4 per cent.
With regards to rent, Abu Dhabi suffered from a steeper decline than Dubai.
Rental prices in Abu Dhabi fell 10.7 per cent year-on-year, while in Dubai they dropped 7 per cent year-on-year.
Apartment rentals in Abu Dhabi plunged 11 per cent while villa rentals declined 9.4 per cent.
In Dubai, apartment rentals fell 6.5 per cent and villa rentals tumbled 10.2 per cent.