Real Estate Market Commentary 20-06-2012

Dubai: According to Dubai Statistics Center (DSC)’s latest monthly release, overall prices increased 0.3% M-o-M in May-12, while housing rentals and utility prices exhibited stability, declining just 0.1% M-o-M. On a Y-o-Y basis, deflation in overall prices continued the downtrend, albeit at a lower rate of 1.2% from 1.5% a month earlier and 1.9% in Mar-12. A similar trend was observed in the housing component, which dropped to 5.7% Y-o-Y from 5.9% in Apr-12 and 7.2% in Mar-12.
Separately, consultants - Mercer in its Worldwide Cost of Living Survey 2012, outlined Dubai as the 3rd most expensive city in Middle East for expats, similar to 2011. However, falling rentals & real estate prices pushed the city 13 places down Y-o-Y, to 94th on the survey globally.