The stand-off between sellers and buyers of residential property in Dubai has led to the number of deals completed falling by more than two-thirds, according to JLL.
In its Dubai Q2 Market Report issued today, the firm’s Mena head of research Craig Plumb said Dubai Land Department figures show a 69 per cent drop in residential transactions during the first half of 2015, with 7,400 deals completed, compared to 23,800 in the same period last year.
The aggregate value of sales also dropped by 66 per cent to Dh12.7 billion.
The firm said that the figures were not a surprise, given the comparative strength of the market in the first half of 2014. Moreover, prices have only fallen back by 8 per cent year-on-year as sellers have held their nerve.
Mr Plumb said the “single digit price correction is in sharp contrast to the declines we witnessed in 2008/09, and is a clear indication that the market is maturing”.
Despite this, he said that he expected further drops in the number and the prices of homes sold during the second half of the year.
Rents have remained flat year-on-year, but are expected to come under pressure from an anticipated increase in supply.
JLL says that 16,000 new homes are due onto the market during the second half of the year, but added that as the market is expect to decline further, “we may see projects delayed into 2016 and beyond”.
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