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Dubai

Dubai Property Prices See First Monthly Fall In 2022, Says Report

The Property Monitor Dynamic Index tracks residential property price trends throughout 42 communities in Dubai. The Index saw a decrease of 0.45 index points to 142.25 from 142.70 in May.

The month-on-month prices of apartments across Dubai increased 0.1 per cent while villa prices increased more than 1 per cent. (Representational Image: Pexels)

New Delhi: The price of properties in Dubai fell month on month for the first time in 2022 in June. Although, according to the report by Property Monitor, the prices remained more than 10 per cent higher on an annual basis. Prices were reduced by 0.31 per cent in June as compared to May, the second time they have fallen in the current cycle, the other time this happened was in November 2021, the report said.

The Property Monitor Dynamic Index tracks residential property price trends throughout 42 communities in Dubai. The Index saw a decrease of 0.45 index points to 142.25 from 142.70 in May.

According to the report, the average property prices in June stood at Dh 1,019 ($277.4) a square foot. The prices were at these levels during the recovery phase of the previous market cycle between July and August 2013, it said.

“ The slowdown and cooling of price appreciation should not be an immediate cause of concern at this stage, rather a welcome sign of a healthy market that can move forward at a sustainable pace whilst continuing to grow,” the report said.

However, in terms of transaction volumes, this was the second strongest June on record, which hit 8,865, according to the index. This marks a 34.2 per cent and 38.8 per cent increase on a month-on-month and year-on-year basis, respectively.

The value of property sales also saw an increase in the emirates by about 55 per cent to Dh 22.7 billion in June, the data of Dubai Land Department showed. As of July 1, 70.8 per cent of the total sales volume of 2021 had been reached.

The initiatives taken up by the government in the UAE, including expansion of the 10-year golden visa programme and new types of residence permits for retirees and remote workers have contributed to the increase of property price in recent months. The swift and effective Covid-19 vaccine campaign has made the country a safe haven for investors.

The rise in the Dubai property prices has been seen particularly in the prime residential sector, which recently registered a record for the most expensive home in the city at Dh280 million. Property Monitor said it expects prices to be stable in the second half of the year.

The month-on-month prices of apartments across Dubai increased 0.1 per cent while villa prices increased more than 1 per cent.

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