Dubai apartment prices dropped an average of 11 per cent last year as the market tackled tough economic conditions, according to property site Bayut.com.
In its annual report the company said apartment prices in the emirate dropped from an average of Dhs2.57m in 2015 to Dhs2.29m last year.
Rents were less affected but still dipped 6 per cent from their 2015 average.
The figures differ significantly to consultancy CBRE’s, which said this week apartment values in Dubai were down 4.6 per cent on average.
Bayut said, studio rents dipped 8 per cent from Dhs62,000 to Dhs57,000 while prices were down 5 per cent to average Dhs0.77m.
One-bed rents were down 5 per cent to Dhs96,000 and prices dipped 10 per cent while two-bed rents were down 8 per cent to Dhs145,000 and prices dropped 11 per cent to Dhs2.5m
Three- and four-bed unit rents dropped 6 per cent and 8 per cent respectively, with prices down 11 per cent and 15 per cent, according to the company.
During the year studios produced the best rental yield, averaging 7.4 per cent, followed by 7 per cent for one-beds, 6 per cent for two-beds, 5.4 per cent for three-beds and 3.5 per cent for four-beds.
The company’s top five rental locations were Dubai Marina, Jumeirah Lake towers, Bur Dubai, Downtown Dubai and Dubai Silicon Oasis, while its top buying locations were Dubai Marina, Downtown Dubai, Jumeirah Lake Towers, Palm Jumeirah and Dubai Sports City.
In Abu Dhabi, Bayut said rents fell an average of 6 per cent over the year but prices were down just 1 per cent on average.
Studio rents were down 8 per cent on average to Dhs63,000 to Dhs58,000 and prices dipped 1 per cent to Dhs0.72m.
One-bed rents were down 6 per cent to Dhs92,000 and prices dipped 2 per cent, while two-bed rents were down 5 per cent to Dhs132,000 and the average price remained the same at Dhs1.86m.
Three-bed rents fell 6 per cent to Dhs175,000 but prices were stable at Dhs2.71m and four-bed rents fell 6 per cent to Dhs240,000 while the average price stood at Dhs4.65m.
Average yields ranged from 8 per cent for studios to 7.2 per cent for one-beds, 7.1 per cent for two-beds, 6.5 per cent for three-beds and 5.2 per cent for four-beds.
The company’s top Abu Dhabi renting locations for 2016 were Al Reem Island, Al Raha Beach, Khalifa City A, Corniche Area and Al Murorr.
Its top buying locations were Al Reem Island, Al Raha Beach, Al Reef, Saadiyat Island and Al Ghadeer.
“With prices having levelled out and rents rationalising, the real estate markets in the two main emirates appear closer to maturity than ever, where inflationary and haphazard overnight gains are quickly becoming a thing of the past,” the company said.
Bayut suggested signs were positive for a market recovery in 2017, although other firms have warned that dollar strength and new units could hit prices this year.