Property prices in the popular Dubai Marina area dropped as much as 18 per cent in Q2 of this year, according to a study by classifieds website Dubizzle.
The dip came despite the community being the most popular on the site, with over 20 million searches in Q2 2015.
The company said that 4.9 million searches were made for one-bedroom apartments in the area between April and June this year. Despite this, sales prices decreased 18 per cent and 14 per cent for studios and three bedroom units respectively.
In contrast, the Palm Jumierah saw an increase in sale prices for studios and two bedroom apartments, climbing from Dhs 1.45m n to Dhs 1.54m and Dhs 3.2m to Dhs 3.35m respectively.
Increases were also seen in Deira, due to maintained demand and a lack of new supply, according to Dubizzle. The rental price of Deira’s studio apartments increased by 18 per cent, while in Bur Dubai prisces rose from Dhs 60,000 to Dhs 65,000 for studios and Dhs 150,000 to Dhs 158,000 for three bedrooms apartments.
“The Dubai property market is softening as per the price changes experienced in Q2 this year. Some areas have experienced decreases while older areas in Dubai showed price increases reflecting a maintained level of demand for these older units and the alignment of their prices with those in newer areas in Dubai. An example of this is that now a studio in Bur Dubai is rented out for Dhs 65,000 annually and in Dubai Marina at Dhs 70,000,” said Dubizzle product marketing manager Ann Boothello.
In Abu Dhabi the firm reported price hikes in the rental market. Two bedroom apartments on Saadiyat Island increased by over 10 per cent and three bedroom units climbed from Dhs 210,000 to Dhs 240,000.
Al Reem Island was the most popular destination in the UAE capital with over two million searches in Q2, two bedroom units were the most sought after with 123,000 searches.
Dubizzle said Mussafah East, encompassing Mohammed Bin Zayed City and Khalifa City remained the most affordable area to rent in Abu Dhabi. This was despite a rental price increase of 13 per cent.
Mussafah East one-bedroom apartment rents rose from Dhs 48,000 to Dhs ,54,000 and in Khalifah City A, prices rose from Dhs 50,000 to Dhs 55,500.
“Prices of properties for sale decreased across Dubai, with the exception of studios and two bedroom apartments on the Palm Jumeirah increasing up to 6 per cent. Abu Dhabi on the other hand, experienced price increases in for sale and rent properties; however Al Reem Island saw a drop in prices for one, two, and three bedroom apartments,” added Boothello.