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.
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.
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.
- 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.
The NAB Residential Property Index fell to its lowest level since mid-2012 as house price growth expectations were scaled back across most states. Queensland is tipped to lead the country for capital gains in the next 1-2 years while local investors are playing a smaller role in both new and established property markets. Foreign buyers were also less active nationally except in Queensland.
The document provides an overview of the real estate market in Jeddah, Saudi Arabia in 2017. It discusses the macroeconomic environment, noting that while GDP growth has declined due to lower oil prices, the government is implementing reforms to diversify the economy. It then summarizes the performance and outlook of the residential, retail, and office sectors in Jeddah. For the residential sector, it highlights mismatches between the types of units supplied and demanded. The retail sector is expected to continue growing due to rising consumer spending, while the office sector may see increased demand from private sector employment and women entering the workforce.
The real estate industry in Nigeria has experienced significant growth since 2000 but may have declined in 2016 due to economic challenges. The industry contributes 3.9% to GDP and employs around 1 million people. After negative growth in 2016, the industry is forecast to recover and grow at an average rate of 5.39% between 2017-2020, supported by private and public investment. However, macroeconomic and political uncertainties could continue to impact the performance of the real estate sector in 2017.
NIGERIA REAL ESTATE MARKET OUTLOOK 2017 (01)Ayodele Thomas
The Nigerian real estate market struggled from 2015-2016 due to economic and political uncertainties, with rental rates declining and new construction projects stalling. However, the 2017 outlook is positive if the economy rebounds as expected. New developments in office and retail space are projected to increase occupancy and rental rates as demand rises with an improving economy and population. The 2017 national budget aims to boost infrastructure spending and economic growth, which could pull the real estate sector out of its downturn later in the year through higher property prices, construction activity and consumer demand.
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.
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.
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.
- 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.
The NAB Residential Property Index fell to its lowest level since mid-2012 as house price growth expectations were scaled back across most states. Queensland is tipped to lead the country for capital gains in the next 1-2 years while local investors are playing a smaller role in both new and established property markets. Foreign buyers were also less active nationally except in Queensland.
The document provides an overview of the real estate market in Jeddah, Saudi Arabia in 2017. It discusses the macroeconomic environment, noting that while GDP growth has declined due to lower oil prices, the government is implementing reforms to diversify the economy. It then summarizes the performance and outlook of the residential, retail, and office sectors in Jeddah. For the residential sector, it highlights mismatches between the types of units supplied and demanded. The retail sector is expected to continue growing due to rising consumer spending, while the office sector may see increased demand from private sector employment and women entering the workforce.
The real estate industry in Nigeria has experienced significant growth since 2000 but may have declined in 2016 due to economic challenges. The industry contributes 3.9% to GDP and employs around 1 million people. After negative growth in 2016, the industry is forecast to recover and grow at an average rate of 5.39% between 2017-2020, supported by private and public investment. However, macroeconomic and political uncertainties could continue to impact the performance of the real estate sector in 2017.
NIGERIA REAL ESTATE MARKET OUTLOOK 2017 (01)Ayodele Thomas
The Nigerian real estate market struggled from 2015-2016 due to economic and political uncertainties, with rental rates declining and new construction projects stalling. However, the 2017 outlook is positive if the economy rebounds as expected. New developments in office and retail space are projected to increase occupancy and rental rates as demand rises with an improving economy and population. The 2017 national budget aims to boost infrastructure spending and economic growth, which could pull the real estate sector out of its downturn later in the year through higher property prices, construction activity and consumer demand.
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.
The Susan G. Komen Central and South Jersey Race for the Cure will take place on October 4, 2015 at Six Flags Great Adventure. Participants can walk or run to help fundraise for breast cancer research and support breast cancer survivors and those who lost their battle to the disease. More information about registering as an individual, team member, or volunteer can be found on the organization's website.
El IVA es un impuesto indirecto y regresivo que se cobra sobre el valor agregado de los bienes y servicios. Es un impuesto al gasto que se aplica sobre el valor de venta final menos los costos parciales. Además, aunque se cobra a todos por igual, afecta más a las personas con menos ingresos.
O documento descreve os procedimentos e resultados de testes realizados para identificar uma substância desconhecida. A substância foi identificada como etanoato de etila após análise de espectros e informações obtidas, incluindo um ponto de ebulição experimental de 79°C. Testes com 2,4-dinitrofenil-hidrazina e iodofórmio indicaram a presença de aldeídos ou cetonas.
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.
The document discusses three examples of macro social work practice:
1) Centene building a new claims center in Ferguson, MO, bringing 200 jobs and economic opportunity to the community.
2) Paul McKee's plan to redevelop North St. Louis through a 15-year, $390 million project creating 22,000 jobs and improving infrastructure, education, and healthcare.
3) The Occupy Wall Street movement which brought awareness to income inequality and corporate influence through protests on Wall Street.
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
- 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.
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.
- 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 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
- 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
Developers in the National Capital Region of India are struggling to attract buyers despite offering deep discounts and incentives. Housing sales fell significantly in 2015 compared to the previous year, while unsold inventory rose over 12%. The real estate market in NCR is not expected to see any recovery for another two years as customer confidence in developers is low and concerns over delayed projects persist. Even price cuts of 15-20% have not been enough to drive sales as buyers remain wary. A turnaround will only be possible once developers start delivering projects on time.
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.
The real estate markets in Abu Dhabi and Dubai have seen different trends in recent months.
In Abu Dhabi, the residential market has seen healthy demand and price growth of 11-35% for apartments and 5-30% for villas due to new project launches and government initiatives. However, rental yields have decreased as sale prices have grown faster than rents.
The Dubai residential market has slowed down, with transactions declining and stable or slightly increasing rents. However, office and retail spaces have seen rising lease rates and occupancy due to economic growth.
Both markets are expected to continue growing in 2015, with new project openings supporting the residential and commercial sectors, though increased housing supply may slow price
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.
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 Susan G. Komen Central and South Jersey Race for the Cure will take place on October 4, 2015 at Six Flags Great Adventure. Participants can walk or run to help fundraise for breast cancer research and support breast cancer survivors and those who lost their battle to the disease. More information about registering as an individual, team member, or volunteer can be found on the organization's website.
El IVA es un impuesto indirecto y regresivo que se cobra sobre el valor agregado de los bienes y servicios. Es un impuesto al gasto que se aplica sobre el valor de venta final menos los costos parciales. Además, aunque se cobra a todos por igual, afecta más a las personas con menos ingresos.
O documento descreve os procedimentos e resultados de testes realizados para identificar uma substância desconhecida. A substância foi identificada como etanoato de etila após análise de espectros e informações obtidas, incluindo um ponto de ebulição experimental de 79°C. Testes com 2,4-dinitrofenil-hidrazina e iodofórmio indicaram a presença de aldeídos ou cetonas.
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.
The document discusses three examples of macro social work practice:
1) Centene building a new claims center in Ferguson, MO, bringing 200 jobs and economic opportunity to the community.
2) Paul McKee's plan to redevelop North St. Louis through a 15-year, $390 million project creating 22,000 jobs and improving infrastructure, education, and healthcare.
3) The Occupy Wall Street movement which brought awareness to income inequality and corporate influence through protests on Wall Street.
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
- 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.
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.
- 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 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
- 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
Developers in the National Capital Region of India are struggling to attract buyers despite offering deep discounts and incentives. Housing sales fell significantly in 2015 compared to the previous year, while unsold inventory rose over 12%. The real estate market in NCR is not expected to see any recovery for another two years as customer confidence in developers is low and concerns over delayed projects persist. Even price cuts of 15-20% have not been enough to drive sales as buyers remain wary. A turnaround will only be possible once developers start delivering projects on time.
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.
The real estate markets in Abu Dhabi and Dubai have seen different trends in recent months.
In Abu Dhabi, the residential market has seen healthy demand and price growth of 11-35% for apartments and 5-30% for villas due to new project launches and government initiatives. However, rental yields have decreased as sale prices have grown faster than rents.
The Dubai residential market has slowed down, with transactions declining and stable or slightly increasing rents. However, office and retail spaces have seen rising lease rates and occupancy due to economic growth.
Both markets are expected to continue growing in 2015, with new project openings supporting the residential and commercial sectors, though increased housing supply may slow price
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.
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.
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 provides an overview of the 2014 Riyadh real estate market in Saudi Arabia. It discusses the KSA macroeconomic environment, including GDP growth of 3.59% and a budget deficit of SAR 54 billion in 2014. It then summarizes the Riyadh residential, retail, office, and hospitality markets. For the residential market, it notes undersupply, expected growth in housing units of 3.8% annually, and demand driven by population growth. The retail market is seeing increased spending and projected sales growth of 7% annually. Upcoming office and retail projects may weaken the office market through increased supply.
The report gives an overall macroeconomic overview followed by latest real estate updates and trends in each city through supply and demand, rental and capital values as well as market prognosis for 2013 onwards.
The National Property Index rose 1% in the Oct-Dec 2014 quarter. Seven of the 11 cities tracked posted a 1-3% rise in their City Index values, with Ahmedabad seeing the largest rise at 3%. Delhi and Mumbai saw a 1% drop. Demand for properties priced between Rs. 20-50 lakhs increased 3%. Active supply declined 2% nationally. Rental returns remained high in Bengaluru, Hyderabad, and Kolkata. Mumbai, Bengaluru, and Pune continued to be the most preferred investment destinations.
Dubai Advances in the Capital Value Growth Rankings.pdfFiyona Nourin
Dubai with a platform to increase their attempts to usher in the economy through aggressive governmental steps and digital innovations from the startups to multinational corporations.
1. Dubai Real Estate Market
Review: FOURTH Quarter 2015
www.valustrat.com
2. 1 | ValuStrat - Real Estate Research Report - Quarter 4, 2015 www.valustrat.com | 2
ValuStrat in the Media
Falling property prices seen helping Dubai to stay competitive
Earlier this month, Standard & Poor’s said real estate prices in Dubai will probably decline as much as 20
percent this year and could keep falling in 2016. Consultants at ValuStrat said property prices in Dubai
have declined by more than 10 percent over the past year as investor interest has fallen. Its third quarter
2015 real estate report said that with a steady decline in prices, stagnant investor interest, delayed
supply, stable rents and decreasing sale volumes, next year may witness a plateau in prices, indicating
a buyer’s market.
Preparing for new challenges
For 2016, all eyes will be on the Federal
Reserve’s interest rate policy decisions in
the United States, the regional geo-political
situation, as well as any effect from the
planned removal of sanctions on Iran. With
a continued safe-haven status for Dubai,
ValuStrat expects the residential market
to stabilise. Resulting in a rise in inquiries
for ready properties in prime areas, in
anticipation of capital appreciation, as well
as in mid-affordable areas as investors
search for higher rental yields. Off-plan
developers will continue to offer improved
product and more competitive payment
plans, in an effort to attract buyers.
More Dubai housing in the pipeline
but experts warn of delivery delays
Real Estate Consultancy firm ValuStrat said in
its Q3 report that Dubai’s residential market
anticipates a total supply of 18,000 apartments
and 3,770 villas in 2015. Fifteen off-plan
projects were launched in Q3 to add more
than 30,000 units to the residential pipeline
by 2025. Research manager at ValuStrat,
Haider Tuaima, said: “27 per cent of this year’s
residential projects with approximately 7,800
units scheduled for completion, are delayed
and have been rescheduled for hand-over
during the next two years, reflecting some
construction slowdown in this sector.”
No drop in average Dubai property prices
in November
Average property prices in Dubai showed no
decline in November, the first month since the
start of a market correction in March 2014,
according to a new report. The November
ValuStrat Price Index (VPI) for Dubai’s
residential market showed that, on average,
there was no monthly change in values across
the 26 areas it monitors for apartments and
villas. The November VPI registered 98 index
points, similar to the previous two months, the
first time the residential market registering no
effective monthly change since March 2014,
ValuStrat said.
Revealed: Areas in Dubai where
residential property prices fell in Q3
In Q3 this year, Dubai apartment and villa
markets saw values marginally decline
by 0.7% and 1.1% QoQ respectively. The
median apartment value in September was
AED 14,122 per sq m (AED 1,312 per sq
ft) and for villas was AED 14,660 per sq m
(AED 1,362 per sq ft, according to the latest
third quarter 2015 real estate report issued
by Dubai-based consulting firm ValuStrat.
Compared to Q2, apartments in Business
Bay saw an average value drop of 2.1%,
followed by a 2% decline in International
City, and a 1.7% dip in Discovery Gardens,
based on the ValuStrat Price index, a 100
point index that tracks residential values in
26 key locations in Dubai from January 2014.
16 December 201519 December 2015
19 November 2015
16 November 2015 16 November 2015
1 November 2015
Dubai’s nine-month land transactions hold steady
According to research by the consultancy ValuStrat, compared with the second quarter, the transacted
price for residential property in Dubai during the third quarter was down by an average of 5.6 per cent
(this is based on transactional activity garnered from 26 key freehold locations in Dubai and based
on which the firm has set up a ‘residential index’). “The median transacted apartment price stands at
Dh1,008 per square feet, while the median for a villa was Dh1,068 per square foot,” according to the
ValuStrat report. “Statistical analysis suggests that next year may witness a plateau in prices, indicating a
buyer’s market with deals being encouraged as a result of price negotiation by vendors”.
3. ValuStrat Price Index (VPI)
Residential
Source: ValuStrat
3 | ValuStrat - Real Estate Research Report - Quarter 4, 2015 www.valustrat.com | 4
2015 Q4 - Real Estate
Indicators
• Consumer Price Index (CPI) for Dubai
increased by 3.0% in December when
compared to last year
• Overall 2015 inflation rate was 3.99%, as
housing and utility expenses registered a
7% increase when compared to 2014
• Monthly inflation rates decreased for the
first time in 2015 with October at -0.43%,
-0.19% for November and -0.04% in
December
• Housing and utility expenses inflation
increased between 0.25%-0.5% on a
monthly basis
Source: Dubai Statistics Centre
*Residential & commercial trans.
Source: DLD, Valustrat
Source: REIDIN, ValuStrat Source: REIDIN, ValuStrat
Source: REIDIN, ValuStrat Source: REIDIN, ValuStrat*Residential & commercial trans.
Source: DLD, Valustrat
Source: Hotel News Now – STR
Global, ValuStrat
Source: Hotel News Now – STR
Global, ValuStrat
dubai Population
-14%
Average Ticket Size
Q-o-Q
-2%
Apartment Asking Rents
Q-o-Q
-6.4%
Q4 Y-o-Y
-5%
Office Prices
Q-o-Q
-2%
Villa Asking Rents
Q-o-Q
0%
Office
Asking Rents
Q-o-Q
6%
Transactions
Volume
Q-o-Q
-2%
Hotel Occupancy
Q4 Y-o-Y
-12%
Hotel ADR
Q4 Y-o-Y
2011
2,003,000
2012
2,105,000
2013
2,210,300
2015
2,450,000
2014
2,320,800
Source: Dubai Statistics Centre
Consumer Price Index vs Housing Index
January 2012 – DECEMBER 2015
130
J J J J JJ J J JJ J JF F F FM M M MM M M MA A A AA A A AS S S SO O ON N ND D D
2012 2013 2014 2015
125
120
115
110
105
100
95
90
CPI General Rate (2007=100)
Housing, Water, Electricity, Gas and other fuels
Macro-Economic Snapshot
• Dubai’s 2016 budget of AED 46.1 billion has been approved - 12% increase over the previous year,
no deficit
• Infrastructure, transport and economics amounts to AED 16.6 billion as Dubai prepares to host
Expo 2020, maintaining the size of its investments in infrastructure over the next five years
• 37% of spending will go towards social development, 21% for security, justice and safety sectors
and 6% for government excellence sector
• Dubai’s population as of December 2015 was 2.45 Million
• Population annual growth rate was 5.6% in 2015 with an average household size of 4.2 individuals
O N D
4. 5 | ValuStrat - Real Estate Research Report - Quarter 4, 2015 www.valustrat.com | 6
• After a 6.4% YoY decline, more cash investors
are seeking projects by well reputed
developers particularly for ready properties
• Dubai apartment and villa markets saw
values marginally decline by 0.1% and 0.4%
QoQ respectively
• The median apartment value in December
was AED 14,122 per sq m (AED 1,312 per sq
ft) and for villas was AED 14,660 per sq m
(AED 1,362 per sq ft)
• ComparedtoQ3,apartmentsinInternational
City, Discovery Gardens and Business Bay
saw a marginal value dip of 0.4% to 0.5%,
while remaining apartment locations saw
no significant change in values
• VillasintheMeadowsandJumeirahParksaw
marginal declines in value of 1% and 0.8%
respectively, however, other villa locations
monitored by the VPI remained stable
ValuStrat Price Index -
Residential Residential
A comparison of values of a fixed basket of properties in 26 freehold locations over time, has given
the ValuStrat Price Index (VPI) the ability to compare like with like, factoring in property specifications
such as quality, views, amenities and age. The Q4 VPI has shown a 6.4% decline of values YoY. However,
the quarterly rate of decline has shown no significant change in values. October and November’s
residential VPI both registered 98.0 points, while December saw a marginal decline of 0.1% to 97.9
points. This marks the first time the residential market has registered no effective quarterly change
since the current period of correction that began after the peak growth in March 2014. Statistical
analysis suggests that 2016 may witness a plateau in prices, indicating a buyer’s market, anticipating
higher rental yields for mid-affordable properties, and increased interest in prime properties in a
search for capital appreciation.
Residential Supply
• The estimated total supply of residential
apartments and villas in 2015 amounted
to 17,328 units, bringing the total
number of residential units in Dubai to
approximately 485,000
• Around half of the residential projects,
with approximately 15,000 units, originally
scheduled for completion in 2015, are
delayed and have been rescheduled for
handover during 2016 and 2017. Reflecting
continued construction sector slowdown
• Carryover from 2015, and planned 2016
completions, indicate 30,000 apartments
and 5,300 villas are slated for completion
this year. However, as in recent years
this volume may be subject to significant
downward adjustment
• Seven off-plan residential projects were
launched in Q4 to add more than 1,500
units to the residential pipeline by 2018.
Projects included Address Residence
Dubai Opera, Ritz Residence Al Furjan
and the Park Ways at Dubai Hills
Residential Prices
• The median residential transaction price
witnessed a decline of 11.7% YoY
• When compared to the previous quarter,
the median residential price was up for
the first time in 18 months by 3.8%
• The median transacted apartment price
stands at AED 11,324 per sq m (AED
1,052 per sq ft), down by 12% YoY and up
by 4% QoQ
• The median transacted villa price stands
at AED 11,582 per sq m (AED 1,076 per
sq ft). Declining by 13% YoY and up by
0.7% QoQ
• ValuStrat observes that the above
Dubai Land Dept statistics may include
transaction prices agreed historically.
Additionally, Q4 2015 included the
October 31st Oqood deadline for property
registrations
Source: ValuStrat
Valustrat Price Index
16 APARTMENT AND 10 VILLA LOCATIONS IN DUBAI
[Base: Jan 2014=100]
* May be subject to significant downward adjustment
Source: Dubai Statistics Centre, REIDIN, MEED Projects, ValuStrat
dubai Residential Supply 2013-2016
(‘000 Units)
Existing New Apartments* New Villas*
2014
2016E 485 30
14
5.31
3.46467
467
4502013
Source: REIDIN, ValuStrat
RESIDENTIAL MEDIAN TRANSACTED PRICES
Last 2 Years
-3.5%
Last Year
-11.7%
Last 6 Months
-3.4%
Last Quarter
-5.6%
Jan
100
103
107
109
111 111
110
108
106
103
104
103
101
100 100
99 98 98 98 98 98 98 98
JanFeb FebMar MarApr AprMay MayJun JunJul JulAug AugSep SepOct OctNov NovDec Dec
2014 2015
113
3.8%
2015E
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)
• 510,000 sq m (5.5 Million sq ft) GLA is
expected to have been delivered during
2015, with 533,000 sq m (5.7 Million sq ft)
during 2016
• Key completions include One JLT by DMCC
delivering 27,000 sq m (290,000 sq ft) of
GLA, and Iris Bay located in Business Bay,
adding 34,000 sq m of GLA (370,000 sq ft)
• The newly established free zone in Dubai
World Trade Centre has added 90,000 sq
m (970,000 sq ft) of office space in Dubai
Trade Centre District (DTCD) phase one
Office Prices
• Overall office prices fell by 13% year on year
• Negative growth of 4.6% seen during this
quarter when compared to the previous quarter
• Average prices of shell and core office space
in Downtown Dubai decreased by an estimated
5% to 7% since Q3, to an average AED 24,760
per sq m (2,300 per sq ft)
• Average shell and core prices in Business Bay
and Jumeirah Lake Towers ranged from AED
10,200 – AED 13,000 per sq m (AED 950 – AED
1,200 per sq ft)
• Dubai Silicon Oasis remained stable quarter-
on-quarter with an average asking price of
AED 7,750 per sq m (AED 720 per sq ft)
Office Rents
• Median asking rents for office space
remained relatively stable during Q4
• Only marginal change in median office
market rentals were recorded in the last
12 months
• The median asking rent for office space
was AED 1,173 per sq m (AED 109 per sq ft)
• DIFC saw the highest asking rents of AED
3,767 per sq m (AED 350 per sq ft)
7 | ValuStrat - Real Estate Research Report - Quarter 4, 2015 www.valustrat.com | 8
Source: REIDIN, ValuStrat
OFFICE MEDIAN TRANSACTED PRICES
Last 2 Years
15.4%
Last Year
-13.0%
Last 6 Months
-6.7%
Last Quarter
-4.6%
Source: REIDIN, ValuStrat
OFFICE MEDIAN ASKING RENT PERFORMANCE
Last 2 Years
21.7%
Last Year
-0.5% -0.5% -0.4%
Last 6 Months Last Quarter
Residential Rents
• Overall residential asking rents declined by
5% YoY
• Asking rents this quarter were 10.4% lower
than the same period two years ago
• Villa and apartment asking rents saw a 3%-
5% drop YoY and a 2.3% dip QoQ
• Apartment asking rents were 11% lower than
the same period two years ago
• Dubai’s 2015 residential rental performance
led to most areas being negatively adjusted
by the RERA 2016 Rental Increase Calculator
Source: REIDIN, ValuStrat
RESIDENTIAL MEDIAN ASKING RENTALS
Last 2 Years Last Year
-5.0%-10.4%
Last 6 Months
-6.2%
Last Quarter
-2.3%
Source: REIDIN, MEED Projects, ValuStrat
dubai OFFICE Supply 2013-2016
(MILLION SQ M GLA)
Existing Stock Expected Supply
2014
2016E 8.39 0.53
0.517.88
7.88
7.532013
2015E
6. Hotel Performance
• The average occupancy in Q4 was 80%
• October and November saw occupancy rates of 80% and 83% respectively
• With increasing new hotel room supply, year-on-year Average Daily Rate (ADR) for October dropped
by 14.7%, November declined by 9.1%
• Continueddownwardpressureonroomratesisexpectedinthemediumtermduetosupplyexceeding
demand, currency fluctuations, oil prices and geo-political situations affecting general sentiment
Retail Supply
• This quarter saw an additional 167,000 sq
m (1.8 Million sq ft) of retail mall Gross
Leasable Area (GLA)
• 130,000 sq m (1.4 million sq ft) of GLA has
been added with the opening of Nakheel’s
Dragon Mart 2 located in International City
• Nakheel also inaugurated the 37,000 sq
m (400,000 sq ft) Golden Mile Galleria on
Palm Jumeirah
• Retail announcements this quarter included
a 72,000 sq m (775,000 sq ft) GLA Avenues
Mall, located in Dubai Silicon Oasis and a
second 20,440 sq m (220,000 sq ft) Irish
Village within Dubai Parks and Resorts
• This quarter, Dubai saw the opening of the
region’s largest Apple Store at the Mall of
the Emirates
Hotel Supply
• The estimated total number of hotel rooms
and hotel apartments in 2015 stood at more
than 100,000
• Six hotels with 2,138 hospitality units were added
in Q4, five of which are 5-star and one 4-star
• New hotel openings included Palazzo Versace
in Culture Village, St. Regis Al Habtoor City,
Steigenberger Hotel Business Bay and Hilton
Garden Inn Mall of the Emirates
• Eleven new hotels were announced adding 4,251
keys to the pipeline over the next three years
• Notable hotel announcements included St.
Regis Dubai - The Palm, Mercure Hotel in JVT,
Taj Arabia in Dubai Land and The Rosemont
Hotel & Residences in TECOM
Retail Performance
• Prime mall in-line retail space continued
to command high rentals ranging from
AED 3,800 per sq m (AED 353 per sq ft)
and up to AED 8,100 per sq m (AED 750
per sq ft)
• Finding vacant food court outlets within
prime malls remained a challenge,
asking rentals ranged from AED 7,600
per sq m (AED 706 per sq ft) and AED
10,800 per sq m (AED 1,000 per sq ft)
• Dubai Duty Free recorded AED 6.892
billion in sales during 2015, 1.5% lower
than 2014, which in turn was 7.3% higher
than 2013. December ’15 sales reached
AED 720 million compared to AED 749
million in December ‘14
9 | ValuStrat - Real Estate Research Report - Quarter 4, 2015 www.valustrat.com | 10
600
300
-
900
1,200
37
1,711
852
391
160
Convenience
(<3k sq m)
Community
(<10k-30k sq m)
Regional
(<30k-90k sq m)
SuperRegional
(>90k sq m)
Neighborhood
(<3k-10k sq m)
Retail Hospitality
Source: REIDIN, ValuStrat
Source: REIDIN, ValuStrat
RETAIL MALLS & SHOPPING CENTRES 2015
(‘000 SQ M GLA)
Food Courts
Restaurants
Hypermarket
Entertainment
Anchors
AED / SQM
PRIME RETAIL MALL ASKING RENTS
High Low
Line Shops
1,000
1,000
1,200
4,000
3,800
7,600
8,100
1,400
1,300
1,900
5,600
10,800
Source: Hotel News Now - STR Global, ValuStrat
* Expected
aed
monthly hotel performance 2014-2015
Jan
2014 2015
JanFeb FebMar MarApr AprMay MayJun JunJul JulAug AugSep SepOct OctNov Nov Dec*Dec
22.50%
0.00%
45.00%
67.50%
90.00%
ADR RevPAR Occupancy %
Source: REIDIN, ValuStrat
HOTEL ROOM SUPPLY 2013 - 2016
(‘000 KEYS)
Hotel and Serviced Apt Rooms New Supply
2014
2016E 101 9.9
7.793
93
832013
2015E