- The Dubai real estate market saw declines in residential property values in Q1 2015, with apartment values dropping 3.1% and villa values falling 4% compared to the previous quarter. Office rents increased 6% over the quarter while residential rents remained flat.
- Retail continued to see strong performance, with Dubai Shopping Festival card spending up 12% over the same period last year. However, hotel occupancy dipped slightly to 86% as new room supply increased competition.
- Overall the report indicates some stabilization in the Dubai property market after price declines in late 2014 and early 2015, with values and rents returning to early 2014 levels across most sectors.
The document summarizes real estate market trends in Dubai during the second quarter of 2015 based on a report by ValuStrat. Key points include:
- Residential property values have declined from their 2014 peak and are now similar to early 2014 levels. Apartments values decreased 2.5% quarter-over-quarter while villa values fell 2.1%.
- Office supply increased with 580,000 square meters expected to be delivered in 2015. However, office prices declined marginally by 0.3% year-over-year and 1% quarter-over-quarter.
- Retail supply also grew with new malls and expansions, though leasing rates varied between 55-100
This document provides an annual report for KYGN, a Tanzanian NGO that aims to improve opportunities for young girls. It summarizes that KYGN was founded in 2006 and now provides education for over 150 girls and boys in Mabogini. It operates a school and safe house for children. KYGN believes that educating women is important to fighting poverty in Tanzania and aims to become a self-sustainable organization through community support.
This document provides a quarterly real estate market review of Dubai for Q3 2015 from ValuStrat. It summarizes that while residential prices declined marginally this quarter, the year-over-year drop was 10.3%. Office prices also declined slightly in Q3. Supply of new residential units was delayed, with many projects pushed back until 2016-2017. Rents decreased across most sectors as well. The Dubai population continued growing in 2015, helping to support overall economic growth despite challenges in the real estate market.
- 2014 started strongly for Dubai's real estate market due to increased confidence after winning Expo 2020, but growth slowed in the third quarter
- Residential property prices saw double-digit growth in the first half of 2014 before declining slightly in the second half, while rents continued to rise
- Office and retail markets performed well, with office prices up 45% in Q2 2014 and retail rents increasing 2% in Q4, but hotel occupancy dropped as supply increased
- The outlook for 2015 is for a continued modest correction in the high-end residential sector but moderate price growth of 5-7% in mid-range areas, along with further rent increases across sectors
Five young people gathered to play with a Ouija board in an abandoned house on November 25, 2007. When they asked who was disturbing them, the board identified three of the boys, who then left. Shortly after, they heard a loud noise and saw that the house had collapsed, killing the two friends still inside.
Luke Peterson is an award-winning cinematographer from Freshwater, NSW, Australia. He has over 15 years of experience shooting a wide range of television programs around the world, including documentaries, reality shows, and sports productions. Luke is proficient with various cameras and equipment, including underwater cameras and drones. He has won two AACTA Awards for Best Cinematography in a Documentary.
ValuStrat is a real estate research and consulting firm based in Dubai. This document provides a quarterly market report on the Dubai real estate market from ValuStrat. It finds that over the past year, Dubai property prices have declined over 10% as investor interest has fallen. While supply is expected to increase in the coming years, over 25% of residential projects scheduled for completion in 2015 have been delayed. The report also notes declines in hotel occupancy and average daily rates in Dubai in the fourth quarter of 2015 compared to the previous year.
The document summarizes real estate market trends in Dubai during the second quarter of 2015 based on a report by ValuStrat. Key points include:
- Residential property values have declined from their 2014 peak and are now similar to early 2014 levels. Apartments values decreased 2.5% quarter-over-quarter while villa values fell 2.1%.
- Office supply increased with 580,000 square meters expected to be delivered in 2015. However, office prices declined marginally by 0.3% year-over-year and 1% quarter-over-quarter.
- Retail supply also grew with new malls and expansions, though leasing rates varied between 55-100
This document provides an annual report for KYGN, a Tanzanian NGO that aims to improve opportunities for young girls. It summarizes that KYGN was founded in 2006 and now provides education for over 150 girls and boys in Mabogini. It operates a school and safe house for children. KYGN believes that educating women is important to fighting poverty in Tanzania and aims to become a self-sustainable organization through community support.
This document provides a quarterly real estate market review of Dubai for Q3 2015 from ValuStrat. It summarizes that while residential prices declined marginally this quarter, the year-over-year drop was 10.3%. Office prices also declined slightly in Q3. Supply of new residential units was delayed, with many projects pushed back until 2016-2017. Rents decreased across most sectors as well. The Dubai population continued growing in 2015, helping to support overall economic growth despite challenges in the real estate market.
- 2014 started strongly for Dubai's real estate market due to increased confidence after winning Expo 2020, but growth slowed in the third quarter
- Residential property prices saw double-digit growth in the first half of 2014 before declining slightly in the second half, while rents continued to rise
- Office and retail markets performed well, with office prices up 45% in Q2 2014 and retail rents increasing 2% in Q4, but hotel occupancy dropped as supply increased
- The outlook for 2015 is for a continued modest correction in the high-end residential sector but moderate price growth of 5-7% in mid-range areas, along with further rent increases across sectors
Five young people gathered to play with a Ouija board in an abandoned house on November 25, 2007. When they asked who was disturbing them, the board identified three of the boys, who then left. Shortly after, they heard a loud noise and saw that the house had collapsed, killing the two friends still inside.
Luke Peterson is an award-winning cinematographer from Freshwater, NSW, Australia. He has over 15 years of experience shooting a wide range of television programs around the world, including documentaries, reality shows, and sports productions. Luke is proficient with various cameras and equipment, including underwater cameras and drones. He has won two AACTA Awards for Best Cinematography in a Documentary.
ValuStrat is a real estate research and consulting firm based in Dubai. This document provides a quarterly market report on the Dubai real estate market from ValuStrat. It finds that over the past year, Dubai property prices have declined over 10% as investor interest has fallen. While supply is expected to increase in the coming years, over 25% of residential projects scheduled for completion in 2015 have been delayed. The report also notes declines in hotel occupancy and average daily rates in Dubai in the fourth quarter of 2015 compared to the previous year.
- In Q2 2015, the Dubai residential market saw a marginal decline of 1.7% overall, an improvement from the 2.3% decline in Q1 2015. Apartment prices declined by 2% while villa prices declined slightly more at 2.4%.
- A total of 24 new off-plan projects were launched in Q2 2015, adding approximately 7,900 new units, most located in secondary areas like Dubai Silicon Oasis and Dubai World Central.
- Rental rates for apartments remained stable in prime areas while declining slightly for villas. Agents surveyed predicted price declines up to 5% in sales for Q3 2015 but stable or slightly lower rents.
- The Dubai real estate market saw slight improvements in the first quarter of 2016, with apartment values increasing 0.1% and villa values declining slightly by 0.2%.
- End users are increasingly seeking to purchase properties to save on rent and benefit from anticipated long-term capital appreciation.
- Residential supply estimates for 2016 total 33,662 units, though many delayed projects mean actual completion numbers may be significantly lower.
- The retail, hotel, and office sectors also experienced soft market conditions in the first quarter, with most metrics like prices, rents, and occupancy declining compared to the previous year.
Dubai residential market report for Q3 2015. Key points:
- Apartment and villa prices declined 2% on average in Q3, consistent with Q2. Price declines were slower in prime areas and accelerated in secondary areas.
- Apartment rents were stable in most areas but declined 2-3% in Business Bay and Dubai Sports City. Villa rents declined marginally in most major communities.
- Approximately 6,000 new residential units were completed in Q3, with most in Dubai Sports City, Dubailand, International City, Jumeirah Golf Estates and Jumeirah Village Circle.
The document summarizes real estate market indicators and trends in Dubai for the fourth quarter of 2016. Some key points:
- Residential prices declined 0.5% year-over-year based on the ValuStrat Price Index, but have been stable over the past 18 months. Median apartment and villa prices increased slightly compared to last quarter.
- Office supply increased by 139,000 sqm in 2016 with 513,000 sqm expected to be delivered in 2017. Office sale prices increased 2.2% quarter-over-quarter while rents remained stable.
- Retail expansion continued with new projects announced, but rental performance has been affected by a stronger US dollar.
This document summarizes real estate market indicators for Dubai in the third quarter of 2016. Residential prices showed mixed results but remained stable year-over-year. Office prices declined 8.3% from the previous year. Retail supply increased with the openings of new malls and showrooms. Hotel occupancy was down slightly at 76% for the first eight months of the year due to an increase in room supply, while room rates declined 10.8% from the prior year. Overall, the Dubai real estate market showed signs of stability and some recovery in the third quarter after softness in previous periods.
The document provides an overview of the Dubai residential property market in Q1 2016. Key points include:
- Apartment and villa sale prices declined 2-5% in Q1 2016 from Q4 2015, with annual declines of 5-11% for apartments and 2-14% for villas.
- Rents for apartments and villas also decreased in Q1 2016, with apartment rents falling up to 4% and villa rents declining up to 5%.
- New residential supply, totaling 36,000 units in the pipeline for 2016, has put downward pressure on both prices and rents.
- Macroeconomic factors like lower oil prices have impacted buyer and investor sentiment, keeping the market subdued
The document provides a quarterly report on the Dubai residential property market. Some key points:
- Apartment and villa sale prices declined 2-5% in Q1 2016 compared to Q4 2015, with overall average decreases of 3%, while rents also declined up to 4%.
- Approximately 4,600 residential units were completed in Q1 2016, with 44% being apartments and 38% townhouses. New supply has put downward pressure on both prices and rents.
- Macroeconomic factors like lower oil prices, a strong dollar, and increased supply continue to impact the real estate market negatively. The outlook remains cautious as buyers and sellers wait for further price adjustments.
This document summarizes the Dubai residential property market report for Q4 2015 from Cavendish Maxwell. It finds that during this period, apartment prices declined 1% on average across Dubai, with some peripheral locations falling more. Villa prices also declined 1% on average. Rents for both apartments and villas declined approximately 1% as well. Looking ahead to 2016, the report forecasts continued supply of new residential units but some delays, with prices and rents expected to remain stable.
This document summarizes the Dubai residential property market report for Q4 2015 from Cavendish Maxwell. It finds that during this period, apartment prices declined 1% on average across Dubai, with some peripheral locations falling more. Villa prices dropped 1% as well. Over the past year, apartment and villa prices have fallen 6% and 8% respectively. Rents for both apartments and villas also declined slightly in Q4 by 1% and over the full year by around 3%. New residential supply and future pipeline projections are also presented.
This document summarizes the Dubai residential property market report for Q4 2015 from Cavendish Maxwell. It finds that during this period, apartment prices declined 1% on average across Dubai, with some peripheral locations falling more. Villa prices dropped 1% as well. Over the past year, apartment and villa prices have fallen 6% and 8% respectively. Rents for both apartments and villas also declined slightly in Q4 by 1% and over the full year by around 3%. New residential supply and future pipeline projections are also presented.
The document is the April 2015 issue of Property Times magazine. It includes the following key points:
- Developers in Dubai are continuing to launch new projects despite market slowdown talks, indicating confidence in long-term prospects.
- Experts say the real estate market will see increased demand starting in late 2016/early 2017 leading up to Expo 2020.
- The issue includes articles on mortgage trends, budget hotels, community updates, and an interview with the director of Cityscape Group.
- It also previews the Property Times People's Choice Real Estate Awards ceremony in May and provides property listings.
This document provides an investment proposal for Dubai Sports City. It summarizes key details about the development including affordable rental rates, expected returns of 8-10% annually plus 30-40% capital appreciation. It then describes the Elite 10 project by developer Triplanet International, including unit sizes and prices. The development will include 50 apartments per floor with 80% golf course views. The document outlines the payment plan and expected supply and demand economics that point to continued growth in the Dubai property market.
Property Times eMagazine July 2014 - Dubai No.1 Realty News Magazine. Property Times Magazine Dubai. Read Property News Online. Dubai Real Estate News Magazine Online. Real Estate Market in Dubai.
This document summarizes the Abu Dhabi residential property market report for Q4 2015. It finds that during this period, apartment and villa prices slightly declined by 1% on average. Over the past year, apartment prices dropped 3% while villa prices fell 4%. Rents for apartments varied across areas but remained stable in most locations, while villa rents were also generally stable. Approximately 2,700 new residential units were completed in 2015, mainly on Al Reem Island and Saadiyat Island. The report forecasts that 14,600 additional units will enter the market between 2016-2018, over 60% of which are scheduled for 2017.
This document summarizes the Abu Dhabi residential property market in Q4 2015. It finds that apartment and villa prices declined slightly by 1% during the quarter. Over the past year, apartment prices dropped 3% on average while villa prices fell 4%. Rent performance was mixed across areas, with some like Al Raha Beach and Al Reem Island seeing stable rents and others like Al Reef Downtown declining 1-2%. Approximately 2,700 new residential units were completed in 2015, mainly on Al Reem Island and Saadiyat Island. Over 14,600 additional units are scheduled to enter the market between 2016-2018, with over 60% in 2017.
This document contains an agenda and feasibility study for a new mid-market hotel project in Dubai. The agenda includes sections on market analysis, project introduction, target audience analysis, location analysis, financial projections, and Q&A. The feasibility study analyzes demand and supply data for Dubai's hotel market, finds opportunity for mid-market hotels, conducts research on Dubai millennials as the target audience, and projects leveraged and unleveraged IRR above the WACC, indicating the project is financially feasible.
This document discusses real estate investment opportunities in Dubai. It reports that Dubai offers average annual real estate yields of 7%, which is higher than yields in other major international markets. While luxury home sales have slowed, demand for affordable rental properties remains high. The document examines yields from various property types and locations in Dubai, finding that affordable housing and up-and-coming areas offer the highest yields, ranging from 7-13%. Experts advise that while guaranteed returns may seem attractive, investors should consider factors like potential rent changes after the guarantee expires and actual market yields. Overall, Dubai continues to attract real estate investors due to factors like security, tax benefits, and expectations of high risk-adjusted returns.
The document provides an overview of the Abu Dhabi residential property market in Q1 2016. It notes that apartment and villa prices declined slightly by 1-2% during this period, while rental rates also decreased between 1-2%. The report also outlines upcoming residential supply additions of 2,400 units in 2016 and forecasts further supply increases in the following years. Macroeconomic factors like decreasing oil prices and inflation rates are examined for their influence on the local property sector.
The document provides an overview of the Abu Dhabi residential property market in Q1 2016. It notes that apartment and villa prices declined slightly by 1-2% compared to the previous quarter, while rental rates also decreased between 1-2%. The report also highlights that 2,400 new residential units are expected to be completed in Abu Dhabi during 2016.
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- In Q2 2015, the Dubai residential market saw a marginal decline of 1.7% overall, an improvement from the 2.3% decline in Q1 2015. Apartment prices declined by 2% while villa prices declined slightly more at 2.4%.
- A total of 24 new off-plan projects were launched in Q2 2015, adding approximately 7,900 new units, most located in secondary areas like Dubai Silicon Oasis and Dubai World Central.
- Rental rates for apartments remained stable in prime areas while declining slightly for villas. Agents surveyed predicted price declines up to 5% in sales for Q3 2015 but stable or slightly lower rents.
- The Dubai real estate market saw slight improvements in the first quarter of 2016, with apartment values increasing 0.1% and villa values declining slightly by 0.2%.
- End users are increasingly seeking to purchase properties to save on rent and benefit from anticipated long-term capital appreciation.
- Residential supply estimates for 2016 total 33,662 units, though many delayed projects mean actual completion numbers may be significantly lower.
- The retail, hotel, and office sectors also experienced soft market conditions in the first quarter, with most metrics like prices, rents, and occupancy declining compared to the previous year.
Dubai residential market report for Q3 2015. Key points:
- Apartment and villa prices declined 2% on average in Q3, consistent with Q2. Price declines were slower in prime areas and accelerated in secondary areas.
- Apartment rents were stable in most areas but declined 2-3% in Business Bay and Dubai Sports City. Villa rents declined marginally in most major communities.
- Approximately 6,000 new residential units were completed in Q3, with most in Dubai Sports City, Dubailand, International City, Jumeirah Golf Estates and Jumeirah Village Circle.
The document summarizes real estate market indicators and trends in Dubai for the fourth quarter of 2016. Some key points:
- Residential prices declined 0.5% year-over-year based on the ValuStrat Price Index, but have been stable over the past 18 months. Median apartment and villa prices increased slightly compared to last quarter.
- Office supply increased by 139,000 sqm in 2016 with 513,000 sqm expected to be delivered in 2017. Office sale prices increased 2.2% quarter-over-quarter while rents remained stable.
- Retail expansion continued with new projects announced, but rental performance has been affected by a stronger US dollar.
This document summarizes real estate market indicators for Dubai in the third quarter of 2016. Residential prices showed mixed results but remained stable year-over-year. Office prices declined 8.3% from the previous year. Retail supply increased with the openings of new malls and showrooms. Hotel occupancy was down slightly at 76% for the first eight months of the year due to an increase in room supply, while room rates declined 10.8% from the prior year. Overall, the Dubai real estate market showed signs of stability and some recovery in the third quarter after softness in previous periods.
The document provides an overview of the Dubai residential property market in Q1 2016. Key points include:
- Apartment and villa sale prices declined 2-5% in Q1 2016 from Q4 2015, with annual declines of 5-11% for apartments and 2-14% for villas.
- Rents for apartments and villas also decreased in Q1 2016, with apartment rents falling up to 4% and villa rents declining up to 5%.
- New residential supply, totaling 36,000 units in the pipeline for 2016, has put downward pressure on both prices and rents.
- Macroeconomic factors like lower oil prices have impacted buyer and investor sentiment, keeping the market subdued
The document provides a quarterly report on the Dubai residential property market. Some key points:
- Apartment and villa sale prices declined 2-5% in Q1 2016 compared to Q4 2015, with overall average decreases of 3%, while rents also declined up to 4%.
- Approximately 4,600 residential units were completed in Q1 2016, with 44% being apartments and 38% townhouses. New supply has put downward pressure on both prices and rents.
- Macroeconomic factors like lower oil prices, a strong dollar, and increased supply continue to impact the real estate market negatively. The outlook remains cautious as buyers and sellers wait for further price adjustments.
This document summarizes the Dubai residential property market report for Q4 2015 from Cavendish Maxwell. It finds that during this period, apartment prices declined 1% on average across Dubai, with some peripheral locations falling more. Villa prices also declined 1% on average. Rents for both apartments and villas declined approximately 1% as well. Looking ahead to 2016, the report forecasts continued supply of new residential units but some delays, with prices and rents expected to remain stable.
This document summarizes the Dubai residential property market report for Q4 2015 from Cavendish Maxwell. It finds that during this period, apartment prices declined 1% on average across Dubai, with some peripheral locations falling more. Villa prices dropped 1% as well. Over the past year, apartment and villa prices have fallen 6% and 8% respectively. Rents for both apartments and villas also declined slightly in Q4 by 1% and over the full year by around 3%. New residential supply and future pipeline projections are also presented.
This document summarizes the Dubai residential property market report for Q4 2015 from Cavendish Maxwell. It finds that during this period, apartment prices declined 1% on average across Dubai, with some peripheral locations falling more. Villa prices dropped 1% as well. Over the past year, apartment and villa prices have fallen 6% and 8% respectively. Rents for both apartments and villas also declined slightly in Q4 by 1% and over the full year by around 3%. New residential supply and future pipeline projections are also presented.
The document is the April 2015 issue of Property Times magazine. It includes the following key points:
- Developers in Dubai are continuing to launch new projects despite market slowdown talks, indicating confidence in long-term prospects.
- Experts say the real estate market will see increased demand starting in late 2016/early 2017 leading up to Expo 2020.
- The issue includes articles on mortgage trends, budget hotels, community updates, and an interview with the director of Cityscape Group.
- It also previews the Property Times People's Choice Real Estate Awards ceremony in May and provides property listings.
This document provides an investment proposal for Dubai Sports City. It summarizes key details about the development including affordable rental rates, expected returns of 8-10% annually plus 30-40% capital appreciation. It then describes the Elite 10 project by developer Triplanet International, including unit sizes and prices. The development will include 50 apartments per floor with 80% golf course views. The document outlines the payment plan and expected supply and demand economics that point to continued growth in the Dubai property market.
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This document summarizes the Abu Dhabi residential property market report for Q4 2015. It finds that during this period, apartment and villa prices slightly declined by 1% on average. Over the past year, apartment prices dropped 3% while villa prices fell 4%. Rents for apartments varied across areas but remained stable in most locations, while villa rents were also generally stable. Approximately 2,700 new residential units were completed in 2015, mainly on Al Reem Island and Saadiyat Island. The report forecasts that 14,600 additional units will enter the market between 2016-2018, over 60% of which are scheduled for 2017.
This document summarizes the Abu Dhabi residential property market in Q4 2015. It finds that apartment and villa prices declined slightly by 1% during the quarter. Over the past year, apartment prices dropped 3% on average while villa prices fell 4%. Rent performance was mixed across areas, with some like Al Raha Beach and Al Reem Island seeing stable rents and others like Al Reef Downtown declining 1-2%. Approximately 2,700 new residential units were completed in 2015, mainly on Al Reem Island and Saadiyat Island. Over 14,600 additional units are scheduled to enter the market between 2016-2018, with over 60% in 2017.
This document contains an agenda and feasibility study for a new mid-market hotel project in Dubai. The agenda includes sections on market analysis, project introduction, target audience analysis, location analysis, financial projections, and Q&A. The feasibility study analyzes demand and supply data for Dubai's hotel market, finds opportunity for mid-market hotels, conducts research on Dubai millennials as the target audience, and projects leveraged and unleveraged IRR above the WACC, indicating the project is financially feasible.
This document discusses real estate investment opportunities in Dubai. It reports that Dubai offers average annual real estate yields of 7%, which is higher than yields in other major international markets. While luxury home sales have slowed, demand for affordable rental properties remains high. The document examines yields from various property types and locations in Dubai, finding that affordable housing and up-and-coming areas offer the highest yields, ranging from 7-13%. Experts advise that while guaranteed returns may seem attractive, investors should consider factors like potential rent changes after the guarantee expires and actual market yields. Overall, Dubai continues to attract real estate investors due to factors like security, tax benefits, and expectations of high risk-adjusted returns.
The document provides an overview of the Abu Dhabi residential property market in Q1 2016. It notes that apartment and villa prices declined slightly by 1-2% during this period, while rental rates also decreased between 1-2%. The report also outlines upcoming residential supply additions of 2,400 units in 2016 and forecasts further supply increases in the following years. Macroeconomic factors like decreasing oil prices and inflation rates are examined for their influence on the local property sector.
The document provides an overview of the Abu Dhabi residential property market in Q1 2016. It notes that apartment and villa prices declined slightly by 1-2% compared to the previous quarter, while rental rates also decreased between 1-2%. The report also highlights that 2,400 new residential units are expected to be completed in Abu Dhabi during 2016.
Similar to ValuStrat-Q1-2015-Dubai-Real-Estate-Research (20)
1. Dubai Real Estate Market
REVIEW: FIRST QUARTER 2015
www.valustrat.com
2. 1 | ValuStrat - Real Estate Research Report - Quarter 1, 2015 www.valustrat.com | 2
ValuStrat in the Media
17 April 2015
- New Dubai Metro
extension ‘could lift house prices by
15%’
ValuStrat said the new route recognises the
mass transit demands of 240,000 residents
with new stations planned in Discovery
Gardens, Al Furjan, Jumeirah Golf Estates,
Dubai Investment Park and the Expo 2020
site.
15 April 2015
- Affordable housing
quotas in Dubai: A middle-class
dream
According to Declan King, Director and
Group Head of Real Estate at ValuStrat:
“More mature western property markets
display a precedence of affordable housing
quotas being introduced for developers —
several such models exist. Wider discussion
would be necessary to understand if any of
these concepts would be suitable for the
Dubai market.”
25 March 2015
– Dubai’s rentals
remain stuck on a high
It has become extremely challenging for
single-income families with one or two
children and in certain occupations, such
as teaching or nursing to come upon an
“affordable” two-bedroom apartment in
Dubai, according to analysis by ValuStrat.
11 February 2015
– To buy or to rent, the
million dollar question
“Anecdotal evidence is that some tenants
have already started buying because
of sales price drops compared to the
continued upward move of rents, thus
making it more attractive for tenants to
consider home purchase,” said Declan
King, Director and Group Head, Real Estate,
ValuStrat
12 January 2015
– Dubai developer targets
Dh9k-Dh15k earners
A recent report by ValuStrat, an advisory,
valuation and asset divestment services
company, said buying an apartment than
renting made sense as the monthly outgo
(mortgage) is lesser than the rent paid.
08 January 2015
– Buying Dubai property
cheaper than renting?
“Our analysis reveals that many tenants
may now be able to purchase a property
similar to the one they are renting at a
lower monthly cost. This appears to be
particularly the case for lower cost starter
type homes,” says Declan King, Director
& Group Head – Real Estate Valuations,
ValuStrat.
10 December 2014
– Real estate remains
our main focus: Kazi
In an exclusive interview with Gulf
Property, Shahid Kazi, CEO of ValuStrat
claims that the team adopts the best
practices to deliver customized solutions to
the clients and offer best possible strategic
advice at every step of the business cycle.
03 December 2014
– Prime mall
rates in Dubai rise
Declan King – Director & Group Head Real
Estate at ValuStrat points out that growing
rates in The Dubai Mall and Mall of the
Emirates illustrates high demand from
retailers and the importance they now
place on being in Dubai.
3. 3 | ValuStrat - Real Estate Research Report - Quarter 1, 2015 www.valustrat.com | 4
Q1 2015 - Real Estate
Indicators
MACRO-ECONOMIC SNAPSHOT
• Dubai’s announced 2015 budget
amounted to AED 41 Billion with no
deficit - representing a 9% increase
compared to 2014
• 36% of the budget is allocated
towards supporting the economy,
infrastructure and transportation
• Dubai’s population as of March 2015
amounted to 2.36 Million
• Between 2011 and 2015 the population
growth rate was 5% per annum with
an average house hold size of 4.4.
• The Consumer Price Index (CPI)
for Dubai increased by 4.33% when
compared to the same period last
year
• Housing and DEWA expenses
continue to rise, albeit at a slower
pace
• The CPI growth rate is showing
signs of slowing down
• January’s month on month growth
rate was 1.88%, February 0.65% and
March 0.23%
Source: Dubai Statistics Centre
Source: Dubai Statistics Centre
Source: ValuStrat
Source: DLD Real Estate
Dashboard, ValuStrat
Source: REIDIN, ValuStrat Source: REIDIN, ValuStrat Source: REIDIN, ValuStrat Source: REIDIN, ValuStrat
Source: DLD Real Estate Dashboard,
ValuStrat
Source: Hotels Now - STR Global,
ValuStrat
Source: Hotels Now - STR Global,
ValuStrat
DUBAI POPULATION
CONSUMER PRICE INDEX VS HOUSING INDEX
JANUARY 2012 – MARCH 2015
4. 5 | ValuStrat - Real Estate Research Report - Quarter 1, 2015 www.valustrat.com | 6
ValuStrat Price Index -
Residential
Residential
• Index of residential values broadly
back to where it was at start of 2014
• Dubai apartment and villa markets
saw values decline 3.1% and 4% QoQ
respectively during the first quarter
• High-end apartment locations saw
most of the value correction; namely
Palm Jumeirah, JBR, and Downtown
Dubai
• The VPI this quarter displays a
higher QoQ decline compared
to DLD data for the same period
(see pg 6). We observe that this
variance is primarily due to the more
representative basket employed in
the VPI and the possible lagging of
DLD data in a changing property
market
Since the ValuStrat Price Index began tracking in January 2014, Dubai residential prices
have witnessed a rise and fall of values. By benchmarking the index from Jan 2014 at
100 points, we found that values peaked in June 2014 at 113, then returned to 100 points
in March 2015, displaying a maturing market price correction within a span of just over
a year.
RESIDENTIAL SUPPLY
• An estimated 467,000 residential
units in stock at the beginning of Q1
• An expected supply of 29,000
apartments and 2,200 villas in 2015,
followed by 23,000 units in 2016
• Four off-plan projects were
launched in Q1 adding 22,000 units
to the residential pipeline between
2016 and 2025
RESIDENTIAL PRICES
• According to the DLD Real Estate
Dashboard, residential transaction
volumes declined by 11% when
compared to Q4 2014, with a lower
average ticket size of AED 1.5 Million
• Average residential transaction
prices witnessed negative trend year
on year, declining by 1.9%
• When compared to the previous
quarter, average residential prices
were stable
• The median apartment price per
square meter stands at AED 12,109
per sq m (AED 1,125 per sq ft)
• Villa transaction prices rebounded
with a growth rate of 6% Q-o-Q
• The median villa price stands at AED
13,896 per sq m (AED 1,291 per sq ft)
Source: REIDIN, Lookup, ValuStrat
Source: REIDIN, ValuStrat
Source: ValuStrat
VALUSTRAT PRICE INDEX – DUBAI RESIDENTIAL SECTOR [BASE: JAN 2014=100]
DUBAI AVERAGE RESIDENTIAL PRICE
PERFORMANCE
DUBAI RESIDENTIAL SUPPLY 2013-2016
(‘000 UNITS)
5. Office
OFFICE SUPPLY
• 2015 began with an estimated 7.88
Million square meters (84.8 Million sq
ft) of office gross leasable area (GLA)
• 590,000 sq m (6.3 Million sq ft) GLA is
expected to be delivered during 2015
and 500,000 sq m (5.3 Million sq ft)
during 2016
• Key completions include Central Park
in DIFC delivering 81,000 sq m (876,997
sq ft) of GLA and part of Dubai Design
District with 4,000 sq m (430,500 sq ft)
of GLA
OFFICE PRICES
• Office Prices increased 6% year on
year
• Negative growth of 4% seen during
this quarter when compared to Q4
last year
• Prices of Grade A office space in
Downtown Dubai ranged from AED
21,528 – 25,830 per sq m (AED 2,000
– 2,400 per sq ft)
• Prices for office space in JLT,
Business Bay and TECOM ranged
from AED 11,355 – 12,900 per sq m
(AED 1,055 – 1,200 per sq ft)
OFFICE RENTS
• YoY asking rents continue to see
double digit increase, currently
standing at 17%
• Quarter on quarter asking rents also
increased by 6%
• The median asking rent for office
space is AED 1,205 per sq m (AED 112
per sq ft)
Source: REIDIN, ValuStrat
Source: REIDIN, ValuStrat
Source: REIDIN, ValuStrat
7 | ValuStrat - Real Estate Research Report - Quarter 1, 2015 www.valustrat.com | 8
RESIDENTIAL RENTS
• Residential asking rents have dipped
by 1% when compared to the same
period last year
• Quarter on Quarter asking rents grew
by just 1%
• Apartment asking rents saw a 1%
decrease YoY, however showed no
change QoQ
• Villa asking rents dipped by 2% YoY
but increased 9% QoQ
DUBAI AVERAGE RESIDENTIAL ASKING
RENT PERFORMANE
Source: REIDIN, Lookup, ValuStrat
DUBAI OFFICE SUPPLY 2012-2016
(MILLION SQ M GLA)
DUBAI AVERAGE OFFICE PRICE PERFORMANCE
DUBAI AVERAGE OFFICE ASKING RENT
PERFORMANCE
6. RETAIL SUPPLY
• Dubai has a stock of 93 malls,
shopping centres and hypermarkets
• Total retail GLA of 3 Million sq m (33
Million sq ft)
• 44 units at Boxpark in Al Wasl were
completed this quarter
• Key new retail launch
announcements during Q1 included
Al Khail Avenue in JVT (350 outlets)
to be completed in Q3 2018, Wasl
Hub in Al Karama to be completed
in Q4 2016 and retail space in the
Golden Mile at Palm Jumeirah (70
outlets) to be opened Q2 this year
HOTEL SUPPLY
• The total number of hotel rooms and
hotel apartments at the beginning of
2015 stood at 93,000
• 2,351 hospitality units were added in Q1
• New hotel openings include Hyatt
Regency and Taj Dubai
• Ten new hotels were announced adding
3,828 keys to the pipeline between Q3
2015 and Q3 2018
• Notable hotel announcements included
Royal Atlantis Resort, Venu Bluewaters
Island Hotel, Park Inn by Radisson and
Anantara Dubai Creek Hotel
HOTEL PERFORMANCE
• This quarter showed a continued strong occupancy rate of 86%, dipping 1.8% when
compared to the same period last year
• With increasing new hotel room supply, the Average Daily Rate (ADR) this quarter slipped
10% YoY
• We note that there is increased competition to the hospitality sector from landlords
leasing their apartments on short-term basis
RETAIL PERFORMANCE
• The 32-day long 20th edition of the
Dubai Shopping Festival saw Visa card
spending in its first two weeks rise by
12% when compared to the same period
during the previous DSF
• Dubai Duty Free announced record
breaking 2014 sales of AED 7 Billion,
achieving an average of 74 thousand
transactions per day Source: REIDIN, ValuStrat
9 | ValuStrat - Real Estate Research Report - Quarter 1, 2015 www.valustrat.com | 10
Retail Hospitality
Source: REIDIN, ValuStrat
Source: Hotels Now - STR Global
Source: Dubai Statistics Centre, ValuStrat
NUMBER OF MALLS IN DUBAI DUBAI HOTEL ROOM SUPPLY 2012 - 2015
(‘000 KEYS)
DUBAI HOTEL PERFORMANCE