Dubai property sales continue to slow

Sales of property in Dubai are slowing, as measures to tighten the market continue to impact activity.

New figures from the Dubai Land Department reveal that transactions in the emirate slipped to 7,311 in March 2015, down over 50 per cent compared to April 2014. The value of sales also fell 37.1 per cent year-on-year, reaching a total of Dh35.3 billion.

The fall in sales continues a cooling trend in the emirate since the government clamped down on speculative investment following a period of booming prices and buying activity. Precious DLD figures showed that the number of sales in Dubai fell almost 15 per cent in 2014 compared to the previous year.

Last month, Deloitte predicted prices in Dubai will soften by 1 to 5 per cent this year before finally stabilising.

The report also follows figures from JLL, which found that activity was subdued in the first quarter of 2015.

Craig Plumb, Head of Research at JLL MENA, commented: "The Dubai real estate market continued to experience subdued activity during the first quarter of the year. Residential sale prices saw a marginal decline across both apartments and villas, although rents remained relatively flat. We expect this trend to continue with average sale prices declining by up to 10 per cent during 2015.  Sale prices normally move ahead of rents and this appears to be happening in the residential market in Dubai at present. "