<The launch of a large number of residential units and hotel rooms in Dubai has led to a drop in residential real estate rental prices, which fell by 3% during the second quarter of 2015, while the market witnessed the launch of 6,750 new residential units in the same period, bringing the city's total residential real estate portfolio to 479,000 units. The hospitality sector added more than 1,200 hotel rooms to its portfolio The luxury segment of the overall market was significantly affected by the decline in the number of tourists from Russia, but the significant rise in the number of tourists from India, China and a number of African countries kept the performance of the economy segment stable.

The luxury segment of the overall market was significantly affected by the decline in the number of tourists from Russia.

New Real Estate Projects

Paul Maysfield, CEO of MBM Real Estate, the real estate management arm of Abu Dhabi Islamic Bank, which monitored the latest changes in the real estate market, said: “The Dubai market is witnessing a large number of new real estate launches, which indicates the importance of properties having the specifications to attract potential buyers and convince them of their investment value. This means a shift to well-managed, integrated mid-market properties, especially those located close to the Expo 2020 site. We are also seeing an increased focus on incentives and unique specifications, especially in the luxury segment, and expect these trends to benefit and appeal to buyers.“

We are seeing an increased focus on incentives and unique specifications, particularly in the luxury segment.

Office space is on the rise

Dubai's office real estate sector continues its balanced performance despite a surge in the number of new office properties with prices remaining generally stable. An additional 2.5 million square feet of office space is expected to enter the market by the end of 2015, with a few developers and investors behind most of the new supply.

Dubai's office real estate sector continues its balanced performance despite a surge in the number of new office properties with prices remaining generally stable, with an additional 2.5 million square feet of office space expected to enter the market by the end of 2015.

Retail Rise

Major retail projects continued to perform well amid healthy growth in the emirate's population and tourist numbers from the GCC, China and India. Average rents for major retail stores increased by 6.4% in the second quarter, on the back of retailers' difficulty in finding locations in major centers.

Major retailers have seen their rents increase by 6.4% in the second quarter, on the back of retailers' difficulty in finding locations in major centers.