Dubai property prices slip again in Q3 as UAE forecasts 6% economic blow in 2020

Dubai property prices slip again in Q3 as UAE forecasts 6% economic blow in 2020

Residential real estate prices in Dubai continued to fall but at a slower pace during the third quarter of 2020 as a result of oversupply and subdued demand, according to the UAE's Central Bank.

CBUAE said in its quarterly economic review for Q3 that average property prices dropped by 0.9 percent year-on-year, citing data from Dubai Land Department.

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Meanwhile, rents in Dubai continued their downward trend, decreasing by 6.9 percent on an annual basis in the third quarter.

The implied rental yield in Dubai moved to 6.6 percent in the third quarter, up from 6.3 percent in the previous quarter.

The coronavirus pandemic has increased pressure on Dubai's property market, which for years has seen supply outstrip demand for new houses and apartments.

The CBUAE report also cited date from the REIDIN house price index to show the average price in Abu Dhabi increased by 0.9 percent in Q3 compared to the previous quarter.

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Although prices showed a quarterly improvement, this was not enough to offset the negative momentum in earlier quarters, leading to an