Dubai’s residential property prices fell in July on both a monthly and yearly basis, newly released data shows.
Overall apartment sales prices decreased 0.24% from June and 2.4% from July 2015, according to figures released Wednesday by Dubai-based real estate information company Reidin. Likewise, villa sales prices went down 0.59% month-over-month and 3.8% year-over-year.
While the new data doesn’t include numbers for the high-end of the residential market, Dubai prime property prices have historically outperformed the mainstream market. Luxury prices increased 2% between the last quarter in 2015 to the first three months of 2016, according to a previous report by Knight Frank.
The London-based real estate consultancy predicts Dubai will benefit from a combination of factors, including continuous government infrastructure spending, developers’ plans to phase out residential projects in line with demand and a strong appetite from liquid markets such as Saudi Arabia and India.
Knight Frank identified Dubai as one of the top five global cities that matter to private high-net-worth individuals earlier this year, and it expects "the emirate to continue attracting investments both regionally and globally."
Still, the firm is cautious about the emirate’s outlook, as the market is affected by a number of fundamentals, including volatility in oil prices and ongoing geopolitical tensions, which, in turn, impact currencies, investor sentiment and demand for property.