Dubai:Lack of demand for luxury property causes price decline

 

Dubai: The lack of demand for luxury properties, weakening of oil prices and strengthening of the US dollar are causing house prices in Dubai to fall.

Reidin announced on Monday that the residential property sales price index in Dubai fell in April 2015 compared to a year earlier, as asking prices for properties registered a negative growth. Between March and April alone, apartment prices dropped 0.87 per cent, while villa sales rates dipped 1.84 per cent.

Property analysts said the downtrend is partly a result of a shift in investor interest from posh, high-end properties to value-for-money residential units.

Another underlying factor is the rise of the US dollar’s value against other currencies which is weakening the purchasing power of investors from countries like India, Pakistan and the UK.

The oil price decline also means that the well-heeled from Russia and Saudi Arabia now have less money to spare to acquire more penthouses and other luxury homes in Dubai.

Read entire article at Gulf News.