1. Continued residential
market correction
from 2014
General sentiment
being influenced
by major
announcements,
economic events
and new regulations
as investors, vendors,
developers, tenants
and tourists keep a
close eye on key
economic indicators
such as oil prices,
currency exchange
rates, interest rates,
market launches and
infrastructural projects
SALES
Dubai investor
buys 125 villas
near race course
ICD Brookfield
Place launched
Central Park
in DIFC
Phase 1 of Dubai
Design District
completed
Restrained
demand
Sluggish investor
sentiment
Slow economic
activity
Dubai inflation hits
4.2% close
to 5 year peak
Indian investors
top list of expatriate
investors in Dubai
as total transactions
cross AED 64 billion
Oil prices continue
to hover around
$50 mark
AED 64 billion in
value from 11,603
transactions
TOURISM OFFICE
Omniyat completes
The Binary in
Business Bay
Dubai World
Trade Centre
status changed
to Free Zone
OFFICE
Phase II of Etihad
Rail on track
40% completed of
Phase 1 of Dubai
Canal project
DAFZA to add
36 warehouses
in Al Qusais and
other facilities near
terminal 3 to meet
growing demand
Sheikh Mohammed
issues Law No (5)
of 2015 on lost
and abandoned
properties in
Dubai and
Law No (10)
of 2015 setting
up Aviation City
INFRASTRUCTURE
Dubai Water Canal
project- Phase II
33% complete
Dubai Metro: 7 new
stations announced
Unilever launches
AED 1 billion project
at Dubai Industrial City
INFRASTRUCTURE
Safa Park to get
lagoon, man-made
beach
Dubai Metro
Red Line
extension to
Expo 2020
site to be ready
by 2019
INFRASTRUCTURE
Dubai World
Central renamed
as Dubai South
Safe haven Dubai
continues to draw
property investors
from the subcontinent
NEWS
Balanced budget
announced to
support real estate
sector in Dubai
UAE firms delaying
IPO plans due to
weak markets
ECONOMY
ECONOMY
Low oil prices
push GCC
to consider VAT
UAE removes
fuel subsidy
as oil prices drop
Global stocks
fall further
after China
devalues Yuan
The Euro falls
to seven-week
low against
Dollar
ECONOMY
Emirati economy
minister: GDP to
grow more than 35%
to AED1.6 trillion
ECONOMYLEGAL
New Dubai Law
No (22) of 2015
to foster
public-private
partnerships
for infrastructure
funding
LEGAL
MARKET
SENTIMENT
Investors adopting
a wait-and-see approach
MARKET SENTIMENT Increased off-plan
demand due
to attractive
payment plans
MARKET
SENTIMENT
REVIEW 2015REVIEW 2015 OUTLOOK 2016OUTLOOK 2016
To look out for:
The impact of
the rise of federal
interest rates
Geo-political
situation
Effect of lifting of
sanctions on Iran
ECONOMY
Nakheel
launches
The Golden Mile
Galleria Mall
Apple opens
first retail store
in the Middle
East, at Mall
of the Emirates
RETAIL
Continued safe haven,
residential market
expected to stabilise
Rise in inquiries for
ready properties in prime
areas, anticipating capital
appreciation, and higher
rental yields in
mid-affordable areas
Competitive payment
plans from developers
Transaction volumes
to increase
Residential rents to soften
marginally, less than 3%-5%
Continued growth in the
prime retail sector
Pressure on hospitality rates
Increased interest for
sub-prime office space
OUTLOOK
Major hotels
expected:
Four Seasons
Hotel–DIFC
Gate Village Area
Rixos the Walk,
JBR
dusitD2
Tecom Dubai
Palm Jumeirah:
The Palm
Resort and Spa
+10k keys to be
added in 2016
HOSPITALITY
Museum of the
Future launched
Dubai officially
world’s busiest
airport for
international
passengers
Russian tourists to
Dubai drop by half
as Rouble continues
to fall
Dubai Parks & Resorts
begins work On
DreamWorks Zone
10 hotels announced
to add 3.8k keys
INFRASTRUCTURE
Major development
of CBD roads on
the cards
The Dubai Tram
has transported
3.7 million
passengers
in just a year
INFRASTRUCTURE
Completion of Phase 1
of Dubai Water Canal
and Emirates Roads
master plan
TOURISM
Dubai Parks &
Resorts begins
leasing retail,
dining units
in Riverland
Mid-market
hotels gain
momentum
in Dubai
24 hotels
announced to add
7.2k keys
Dubai Airports
to expand
Al Maktoum
International Airport
Russian tourist
spending in UAE
plummets amid weak
Rouble and declining
oil prices
SALES
Dubai’s biggest
residential
property deal:
AED 93 million
for Emirates
Hills villa
Expats buying
Dubai property
for first 9 months
of 2015:
Indians
AED 13 billion,
Britons
AED 7 billion,
Pakistanis
AED 5 billion
REVIEW
3k units
construction
delayed
+5k units
launched
from 18 off plan
residential
projects
Q-Line by Al Mazaya,
Maple Townhouses
by Emaar,
Glitz 3 by Danube
Al Khail Avenue,
Wasl Hub, and Golden
Mile retail space
Town Square
by Nshama
Union Oasis
launched by RTA
+22k units from
4 off plan projects
RESIDENTIAL
LAUNCHES
TRANSACTIONS
9 Months of 2015
saw AED 186 Billion
in value from 33,907
transactions
TRANSACTIONS
SALES
British buyer pays
AED 70 million
for off-plan
Palm Jumeirah Villa
‘Twist’ in Dubai
tower gets investor
to pay AED 25 million
for unit
AED 57 billion
in value from
10,907 transactions
RETAIL
City Centre
Me’aisem in IMPZ
Mall of Emirates
extension opens
RESIDENTIAL
8k units
construction delayed
+5k units launched
from 18 off plan projects
TRANSACTIONS
AED 65 billion
in value from
11,397 transactions
TRANSACTIONS
Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1/H1H1 H2H2
VPI 100
PRICE
-0.8%
-2.8%
+1.2%
+5.5%
AED 1,01186%
OCC
RENT
ADR
VPI 98
PRICE
-5.5%
-0.9%
-0.2%
-2.9%
AED 76475%
OCC
RENT
ADR
VPI 98
PRICE
-5.6%
-5.2%
-1.6%
-7.4%
AED 61669%
OCC
RENT
ADR
VPI 98*
PRICE*
+1.4%
+0.6%
-1.0%
-5.0%
*estimated
AED 1,00081%
OCC*
RENT*
ADR*
RESIDENTIAL OFFICE HOTEL
RESIDENTIAL
With general
construction
slowdown,
many of the
expected
units for 2016
may face
significant delays
Expected new
additions:
Dubai Sustainable
City and Akoya
in Dubailand,
Mirdif Tulip,
The Address
Residence
Fountain Views
in Downtown,
Warsan Village,
Jebel Ali Hills
HOTEL
+1.6k keys
14 hotels announced
to add 6.4k keys
489,000 units 8,460,000 sq m GLA 103,000 keys
Unveiling of
Meydan One,
a 3.67 million sq m
development,
launched by
Mohammed Bin
Rashid
Burj2020 District
launched by DMCC,
The Villages by
Dubai South,
Jebel Ali Gardens
by Nakheel,
Creekside 18
by Emaar,
1/JBR by
Dubai Properties
RETAIL
Key new additions
expected:
The Pointe by Nakheel
Meraas Parks and
Resorts-Riverland
Festival City Expansion,
The Ribbon at Motor City
by Union Properties
LEISURE
Notable openings:
Legoland
Bollywood
Motiongate Dubai
IMG Worlds of
Adventure
Dubai Safari Park
Dubai Frame
TOURISM
Dubai sets new
7.2 million
pax record
191,047 hotel
rooms under
contract in
the region
Work starts on
AED 29 million
project at
Motiongate Dubai
RETAIL
Dragon City retail
expansion by Nakheel
Ibn Battuta Mall
launches new
retail extension
Opening of
Palazzo Versace-
Culture Village,
and St. Regis-
Habtoor City
Nakheel and RIU
Hotels & Resorts
discuss
development of
4-star, all inclusive
resort, to be
located on
Deira Islands
HOSPITALITY
OUTLOOK
2016
OUTLOOK
2016
OUTLOOK
2016
OUTLOOK
2016
2. REVIEW 2015 - OUTLOOK 2016
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