Dubai real estate prices will decline for the initial time in 2022, according to a new report.

In recent months, Dubai’s real estate market has experienced career-high transactions, with price increases constantly increasing month on month.

Property prices dipped 0.31 percent in June, the first time this year, bucking the trend, according to Property Monitor.

According to the research, Dubai property prices are currently at AED1,019 per square foot, and the declining trend “should not be an urgent cause of worry at this time.”

“The Dubai property market’s endurance in the face of quickly rising mortgage rates, inflation which appears to be on the rise, and the power of the Dirham due to the US dollar peg persists to wondrously astound and battle any downside risks and potential losses flung at it,” said Zhann Jochinke, CEO of the real estate intelligence firm.

According to the data, the number of transactions increased in June, hitting 8,865 sales, a 38.8 percent rise year on year. Residential transactions drove the rise, accounting for 89.3 percent of all sales.

According to the research, hotel flats accounted for 4.1 percent of commercial property transactions, followed by land sales at 2.7 percent and offices at 2.6 percent.

Estimated net rental yields increased to 6.3 percent in June, the highest level since October 2019. Townhouse yields increased from 5.4 percent to 5.51 percent, whereas apartment yields increased from 0.7 percent to 6.82 percent.

According to the survey, rental yields will rise even more over the following months as the rate of price increase slows.

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