Dubai Villas Demand & Selling Prices — Q1 2016
According to Dubai Government, Emirates Consumer Price Index went up by 4.07% in 2015. The overall Consumer Price Index (CPI) reached 127.05 in December 2015 and the GDP reached 4.6%. The GDP has been calculated using the methodology of production according to Dubai statistics. The decrease of oil prices has affected the government spending and their budgets.
The economic growth, liquidity, the stock market and asset prices have also been affected by the difference in oil prices. JLL report states that this change has also impacted the financing of real estate projects as there is an increased focus on critical infrastructure and affordable housing projects. It seems like the government has decreased their spending on less urgent projects, which causes delays or scaling back of many projects.
By the third quarter of 2015 prices had significantly decreased which started at the beginning of 2015. Although demand rose in the second quarter due to lower prices, only in the last quarter did the sale prices start to indicate a slight enhancement. According to the market study, the sale rate dropped by 5% quarter-on-quarter and 12% year-on-year. Also, the main areas that received the highest number in transactions were Arabian Ranches, Palm Jumeirah and Emirates Living.
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Dubai Expected Villa Supply — Q1 2016
Studies have shown that over 3,750 new villas/townhouses should be handed over in locations of Meydan, Arabian Ranches, Mohammed Bin Rashid City and Dubailand during 2016. Some of the projects are Maple 2 and Arabella Phase 2, developed by Emaar and Dubai Properties Group.