Dubai property saw stable Returns on Investment (ROI) in 2017, but suffered lower rent and sales prices across most property types year-on-year, according to a Bayut.com report.
Based on 94,000 listings hosted on Bayut.com from November 2016-November 2017, the report showed stable, 7% and 5% average ROI on apartments and villas in Dubai, respectively, despite an overall softening of rent and sales prices.
Dubai Marina was the most sought-after area for both renting and buying apartments in 2017, with Mirdif and Arabian Ranches leading in the villa renting and villa buying categories, respectively.
International City was the most affordable popular area for both renting and buying flats, while Mirdif and The Villa offered the lowest-priced villas and townhouses, according to the report.
The data also showed a trend towards off-plan projects in the market, with 86% of all off-plan listings on Bayut.com in the last year based in Dubai.
In addition, because of the large number of off-plan villas under construction or recently completed, end-users are looking to make investments in off-plan rather than ready villas causing the average sale price to fall.
Off-plan listings in Dubai Marina are the most sought after, followed by projects in Downtown Dubai, JVC, JLT and Dubai Silicon Oasis.
As for 2018 prospects, CEO of Bayut.com, Haider Ali Khan, said: “At Bayut.com, our goal is to place extensive data-based reports and area guides at the fore of all UAE house hunting intelligence to help renters and investors alike make sound real estate decisions.
“As more and more off-plan projects are completed in 2018, handed over and put on the secondary market, we can expect prices continuing to attract investors while landlords will have to stay competitive to entice potential tenants.”
Khan added: “In the long run, as the market and the broader economy move on a trajectory of diversification and maturity, the opportunity for developers and sellers to capitalise on their investment remains strong.”