Dubai home prices drop, but show signs of stability

KUALA LUMPUR: Dubai’s overall residential property market saw a 1.98% price drop in August compared with the previous month, according to real estate information company Reidin.com’s August All Residential Sales Price Index for Dubai (SPID-All Residential).

Villa prices, however, showed signs of stabilising as it dipped only 0.14% compared with a drop of 1.19% in July. 

Compared with prices in July, apartments prices fell 2.56%, with prices of apartments over 151 sq m rising 2.15%, while prices of those in the 50 sq m and below category were lower by a nominal 0.12%.

In the 51 to 100 sq m segment, the average nominal price fell 1.07% year-on-year, while on a month-on-month basis, prices rose a nominal 1.38%.

In the 101 to 150 sq m segment, the average nominal price decreased 3.71% year on year in August 2010, while the month-on-month price fell by 1.43%.

Though year-on-year prices in the 151 sq m and above category were down by 5.74%, month-on-month prices rose by a nominal 2.15% in August 2010.

The SPID-All Residential dropped by 1.47 points to touch 174.74 basis points in 2Q2010, a 0.84% fall against the second quarter (2Q) of 2009.

While the apartment index declined by 5.23%, the index for villas showed a rise of 6.99% in 2Q2010 compared with 2Q2009. In August the SPID-All Residential was a mere 64.45 points (64.45%) above its base value of 100 points in January 2003.

Reidin.com gathers data from a number of sources, including transactions for certain districts and communities in Dubai, including seven citywide Dubai indices and a total of 19 district and project-based indices - Business Bay, Downtown, Dubai Marina, Jumeirah Beach Residence, and The Greens, among others