Rents continued to drop in Dubai in Q2, while sale prices of apartments and villas remained largely flat.
Average rental rates for apartments and villas fell 4% and 2% respectively quarter on quarter.
The average selling price of an apartment was down 1% quarter on quarter, while the average price of a villa remained the same across Dubai.
Chestertons, which revealed the figures in its quarterly Observer report, said that landlords seeking to shore up yields should focus on quality.
“The average decline in rental rates can be attributed to several factors, including greater choices at reduced prices,” said Ivana Gazivoda Vucinic, head of consulting and valuations and advisory operations, Chestertons MENA.
“The focus for developers and landlords going forward should be on quality, as tenants proactively seek out cheaper options or move to better quality units for the same price as their existing units.”
In terms of apartment sales values, Business Bay saw a 4% jump in prices following a 9% fall in Q1. Owners in Jumeirah Village Circle enjoyed a 6% increase in average sales value in Q2 following an 8% fall in Q1. International City saw the steepest decline, with average sale prices there down 7% over the previous quarter.
Palm Jumeirah was the only area of Dubai where villa sales values went up, by 4%. Arabian Ranches, Jumeirah Park and The Lakes all saw small declines, while sales values in The Meadows and The Springs remained flat.