Du-buyers needed. Gulf News reports on new analysis from brokerage Jones Lang LaSalle that finds Dubai’s downward trajectory on property prices continues unabated in the third quarter of this year. In the third quarter, apartment prices dropped a further 3 per cent compared with what they were during the second. In the 12 months to end September, values are down 11 per cent, confirming that Dubai is very much a buyer’s marketplace now. (For tenants, there is nothing much to cheer about with the Q3 decline limited to 1 per cent quarter-on-quarter, according to JLL estimates.) But not enough people are buying right now—“It is noteworthy the overall decline is continuing with Q2-2015 representing the lowest level for both sales (4,000 transactions) and values (Dh5.9 billion) since mid-2011,” said Craig Plumb, Head of Research at the regional operations of JLL. “Data from Dubai Land Department show sales volumes peaked in 2013 (33,800 transactions excluding land) and fell back significantly by around 30 per cent in 2014 (to 23,800 transactions). Value followed a similar pattern, peaking in 2013 and declining by 22 per cent in 2014,” Plumb said.
It seems that this trend among property prices may be the norm for the near future as prospective buyers will remain outside of the market, waiting to see how low prices will go. JLL posits that outside a mitigating event, Dubai may have to wait until the years leading up to the World Expo 2020, an international cultural and technological exhibition hosted by the city, for the next growth cycle. Gulf News notes that in response to the softening prices, developers have begun delaying the delivery of new residential projects. [Gulf News]View full listing (pictured top)