Q2 2016 Dubai Residential Market Report

Dubai Residential Market Report

Q2

2016

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Dubai Residential Market Report - Q2 2016

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Foreword Cavendish Maxwell is a highly respected independent firm of chartered surveyors and property consultants, focusing on property services throughout the Middle East and Africa. Established in 2008, Cavendish Maxwell has grown into one of the region’s largest and highest profile property companies, employing over 60 people across 8 departments.

Our experience covers property, land and business asset valuations; investment; asset management; fund management; disposals and acquisitions; rent reviews; lease renewals; development appraisals; advisory services; market research; feasibility studies; project management and building consultancy.

The Cavendish Maxwell Quarterly Residential Market Report for Dubai provides analysis and summary of the apartment and villa properties, highlighting the price movement, rent and yield scenario, residential supply as well as the macro-economic factors impacting this segment.

The report also incorporates the Cavendish Maxwell Residential Market Survey conducted among agents operating within the UAE. The survey showcases how new enquiries, leasing activity and transactions, among other metrics, changed over the previous quarter and also provides an outlook on the following quarter, with predictions by professionals being studied against real performance.

Dubai residential market highlights Average price movement

Residential supply

Q1 2016 - Q2 2016

H2 2016 Pipeline

-0.4% -0.3%

34,475 scheduled units

Q2 2015 - Q2 2016

Q2 2016 Completions

-6%

-6%

2,800 units

Content • Macro-economic factors

• Rent performance

• Investment climate

• Residential supply

• Price performance

• Cavendish Maxwell Residential Market Survey Q2 2016

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Dubai Residential Market Report - Q2 2016

Macro-economic factors Figure 1

CPI Index*

130

• The increase in Consumer Price Index (CPI) for Dubai in April was primarily the result of an increase in school fees, which impacted the increase in prices of the education group by 6.74 per cent.

2 125 1 120

0 Jan

Feb

CPI

• On an annual basis, prices in the food and beverage group increased by 4.08 per cent while that of housing, water, electricity, gas and fuel group showed an increase of 3.99 per cent.

Mar

Apr

Inflation rate

*2007 = 100

Source: Dubai Statistics Centre Figure 2

Main Expenditure Groups - 2016 9%

4.

Furnishings, household equipment and routine household maintenance

%

Health

24

3.34%

1.08%

4.0

0.24%

Alcoholic beverages and tobacco

• As per International Monetary Fund (IMF) estimates in April, average inflation in the UAE is expected to decline to 3.2 per cent in 2016 from 4.1 per cent in 2015.

Recreation and culture

%

48

5.

Education

As per revised IMF estimates in April, Dubai GDP is expected to grow at 3.7 per cent in 2016 compared to 3.6 per cent actual growth in 2015

%

5.52

43.70%

Restaurants and hotels

6.00%

Clothing and footwear 6.1

5%

Communication 08

9.

Miscellaneous goods and services

Food and non-alcoholic beverages

%

Transport

• In April 2016, the IMF revised their growth projections for the UAE with the overall real GDP growth being moderated to 2.4 per cent in 2016 from 3.9 per cent recorded in 2015.

• Non-hydrocarbon growth is projected to be 2.4 per cent “due to sizeable fiscal consolidation, softer economic sentiment, and somewhat tighter monetary and financial conditions”, according to IMF Advisor Zeine Zeidane who led a mission to the UAE in May.

May

11.08%

• The transport group increased by 3.98 per cent, due to a 9.17 per cent increase in the prices of fuel and oils for means of transportation following the decision of freeing the prices of fuel in the State issued by the Ministry of Energy.

3

Inflation rate %

Dubai Annual Inflation - 2016

Annual inflation index of goods and services in the consumer basket in Dubai increased 1.94 per cent in April 2016.

Housing, water, electricity, gas and other fuels

Source: Dubai Statistics Centre

Figure 3

UAE - Real GDP and Consumer Prices

• Despite policy measures in response to low oil prices, the IMF estimates the fiscal deficit in the UAE will widen in 2016 to about 7.2 per cent of GDP, before improving over the medium-term.

15 10

• The current account surplus is projected to decline to 0.3 per cent of GDP in 2016. Private sector credit growth is expected to remain modest due to the slowing economy and rising fiscal financing needs. %

5 0

Real GDP

2021P

2017P

2016P

2015

2014

2013

2012

2011

2010

-10

2009

-5

2008

• Global ratings agency Moody’s noted in May that the UAE government’s debt-to-GDP ratio is low, at around 18 per cent of GDP in 2015, and is expected to remain moderate. The agency also said that the debt of Dubai government-owned entities has remained stable. The agency expects the UAE’s fiscal reserves to remain above 130 per cent of the GDP over the next few years.

Consumer Prices (annual % change) Source: IMF, April 2016

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Figure 4

2.4 2.2

Unleaded petrol 91

Figure 5

Global Oil Prices 80 60 40

Brent

West Texas

May-16

Apr-16

Mar-16

Feb-16

Jan-16

Dec-15

Nov-15

Oct-15

Sep-15

Aug-15

0

Jul-15

20

OPEC Source: Cavendish Maxwell research

Figure 6

Currency Movement 1.2

70

1.0 65 0.8 60

0.6

USD/INR

Borrowing costs for companies have risen this year due to higher Emirates Interbank Offer Rate (EIBOR) (increased by approximately 35 basis points) compared to Q1 2015.

Diesel Source: UAE Ministry of Energy

USD/GBP - USD/Euro

• The ‘leave’ vote in UK on 23 June 2016 shocked global markets, including the UAE, and has created uncertainty in a region already grappling with oil price instability.

1.4

Aug Sep Oct Nov Dec Jan Feb Mar Apr May 15 15 15 15 15 16 16 16 16 16 Unleaded petrol 98 Unleaded petrol 95

• The April Summit in Doha between some of the largest oil producing economies failed to reach a deal on setting output. A follow-up summit in Vienna in June involving OPEC nations also focused on avoiding a production quota, with member countries asserting that their strategy of reaching a balance was working.

• The dirham peg to the dollar has remained a subject of speculation following the oil price drop over the last two years. However, the UAE Central Bank has reiterated the country’s commitment to the dollar peg. The appreciation in the dollar has made the emirate more expensive for tourists but FDI inflows and real estate transaction volumes have registered a growth.

1.6

1

USD / barrel

In Q2 2016 the global oil price recovered to near USD50 from a twelve year low of USD27 per barrel in January.

1.8

1.2

• Among the policies to diversify the economy away from oil, the UAE has endorsed a target to draw 24 per cent of its primary energy consumption from renewable sources by 2021.

• The UAE has faced the oil price slide from a comparatively stronger position than other oil exporters as a result of past macro-economic policies, which have ensured large fiscal buffers. The economy is more diversified and the country continues to attract investments due to its safe haven status. An improvement in oil prices is expected to support growth in the economy in the medium term, which will also be boosted by increased investment ahead of Expo 2020 being hosted

by Dubai.

2

Jun-15

• Petrol prices in the UAE for May 2016 increased by an average of 11 per cent in comparison to April and by 6 per cent from January 2016.

UAE petrol prices

AED / litre

The Ministry of Energy increased fuel prices further for June with Super 98 at AED1.86/litre, Special 95 at AED1.75/litre and E Plus91 at AED1.68/litre. The diesel price was increased to AED1.77/litre for June.

0.4 55

USD/EUR

USD/GBP

May-16

Feb-16

Nov-15

Aug-15

May-15

Feb-15

Nov-14

• Any interest rate increase in the United States is expected to tighten monetary policy in the UAE and other GCC countries, though given the result of the vote in UK, it may be delayed.

0

Aug-14

• In May, the UAE Central Bank announced a change in the way EIBOR is calculated. The rate previously reflected the cost of banks lending to each other and now includes costs of deposits from large clients.

May-14

0.2 50

USD/INR Source: Cavendish Maxwell research

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Dubai Residential Market Report - Q2 2016

Investment climate Figure 7

Real Estate Transactions in Dubai

• There has been a 28 per cent decline in total value of transactions in the first five months of 2016, compared to the same period last year.

Transaction Value

• The sum of real estate investment transactions for 2015 exceeded AED135 billion, with 55,928 investors of 150 nationalities making real estate investments in Dubai’s property sector last year. The number of investors represented a 33 per cent increase from the 41,475 investors reported for 2014.

0%

5,000,000,000 4,000,000,000

-20%

-23%

3,000,000,000 2,000,000,000

Land

-20% -30%

-38%

-40%

-43%

1,000,000,000 0

-10%

-13%

Jan-16

Feb-16

Building

Mar-16

Unit

Change %

Of the total investors in Dubai real estate in 2015, over 55 per cent were foreign investors, accounting for more than AED74 billion.

Apr-16

-50%

May-16

YoY % Change in Total Value Source: Dubai Land Department

• In June Dubai won the bid to host the World Real Estate Congress in 2018. The annual event, organised by the International Real Estate Federation, FIABCI, will make its debut in the Middle East with the 2018 event. It is expected to attract more than 1,000 real estate professionals from over 60 countries.

Figure 8

Real Estate Investments in Dubai - 2015 GCC investors • UAE – 26 billion • KSA – 9 billion • Kuwait – 3 billion

Dubai’s non-oil foreign trade reached

%

33

Non GCC Arab investors • Jordan – 3.5 billion • Egypt – 2.55 billion • Lebanon – 2.53 billion

AED319 billion at the end of March 2016.

55%

Foreign investors • India – 20 billion • UK – 10 billion • Pakistan – 8 billion

Imports contributed AED196 billion, exports

• The annual Dubai FDI Monitor released by Dubai Investment Development Agency shows the largest capital investment in 2015 came from KSA, US, UK, India, and Kuwait generating AED15 billion together. Top sectors by capital investment in 2015 were power generation and distribution, management offices, accommodation and food services, construction and logistics services, generating AED12.8 billion.

%

• China topped Dubai’s trading partners with trade worth AED39 billion in Q1 2016. India was second with AED24 billion worth of trade, followed by USA at third place with AED22 billion.

12

AED36 billion, and re-exports AED87 billion.

Source: Dubai Land Department Figure 9

Doing Business Frontier Score - 2016 Resolving Insolvency Enforcing Contracts Trading Across Borders Paying Taxes Protecting Minority Investors

As per World Bank’s Doing Business Report 2016, the UAE was ranked 31 among 189 economies for ease of doing business.

Getting Credit Registering Property Getting Electricity Dealing with Construction Permits Starting a business

0 • The report highlighted that in 2016 the UAE made certain business reforms that improved rankings such as streamlining the process for obtaining civil defense approval for construction permits, implementing electronic service of process for enforcing contracts, introducing a new case management office within the “Smart Petitions” service allowing litigants to file and track motions online.

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MENA Average

20

40

60

80

100

UAE

Source: World Bank The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each doing business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier.

6

Expected VAT revenue generated as a per centage of GDP During Phase 1 of the Value Added Tax (VAT) rollout in the UAE, companies with annual revenues over AED3.75 million will be required to register under the VAT system and will accordingly be taxed.

Country Bahrain Kuwait Oman Qatar Saudi Arabia UAE

• The VAT and excise tax introduction in the region is aimed at generating additional revenues and reducing reliance on hydrocarbon.

June adding new land plots to the freehold area in Dubai World Central for non-UAE nationals.

• Non-UAE nationals will have the right to absolute ownership, without a specific time frame, of lands and properties located in plots 205, 206 and 207 in the Dubai World Central area.

Figure 10

Share Price Performance Real Estate Equities 8.00

DFM period low – Jan 21

7.00

DFM period high – Apr 24

6.00 5.00 4.00 3.00 2.00 1.00

Emaar

United Properties

Damac

Market value of the Real Estate and

Apr-16

May-16

Drake & Scull

Mar-16

Deyaar

Feb-16

Arabtec Holding

Jan-16

• The decision aims to promote Dubai Aviation City’s objectives to cater to the continuous growth of the aviation sector in Dubai and to further promote the city as an aviation and logistics hub.

Dec-15

0.00 Nov-15

• Owners can also benefit from leasing lands and properties in these plots for a period not exceeding 99 years.

Jun-16

Resolution No (8) of 2016 was introduced in

Source: Tax Policy Reform in the GCC Countries: Now and How? – IMF

Real Estate Equities (AED)

• Finance ministers of GCC member states held an extraordinary meeting in June in Jeddah to approve in principle the treaties for the collection of excise tax and VAT on 1 January 2017 and 1 January 2018, respectively. The common treaties are expected to be announced in Q4 2016.

VAT rate of 5% 1.6% 1.4% 1.4% 0.8% 1.6% 1.5%

VAT rate of 3% 0.9% 0.8% 0.9% 0.5% 1.0% 0.9%

Source: Cavendish Maxwell research

Construction sector index within the Dubai Financial Markets (DFM) declined from 36.4 per cent in Q1 2015 to 34.6 per cent in Q1 2016.

• While trade volume for real estate securities registered an increase of nearly 60 per cent in Q1 2016 over the same period last year, the trade value declined by 10 per cent.

• Share price movement of real estate stocks mirrored the DFM General Index over the last six months with the period high and lows being largely concurrent between the two.

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Dubai Residential Market Report - Q2 2016

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Dubai Residential Market Report - Q2 2016

Price performance Apartments Apartment prices in Dubai declined up to 1 per cent during Q2 2016 and declined an average 6 per cent over the last 12 months.

Q2-16

Q1-16

1,150

Q4-15

1,200

0

Q3-15

1,250

20 Q2-15

1,300

40

Q1-15

1,350

60

Q4-14

1,400

80

Q3-14

100

AED per sq. ft.

1,450

120

Q2-14

• Transaction activity is expected to remain muted during the third quarter in line with past trends. Developers are promoting Ramadan linked payment plans and the ‘affordable’ tag continues to be aimed at first time buyers. However, it is unlikely to ramp up buying activity in the short term among this target segment given the restrictive mortgage-lending requirements and overall liquidity in the market.

Dubai Residential Prices vs. Oil

Q1-14

• Prices have declined nearly 12 per cent since highs in Q2 2014, with market direction largely imitating oil price drop. Even as crude prices reached near USD50 per barrel levels in Q2 2016, uncertainties still remain over low oil prices and will continue to impact residential sale prices in the medium term.

Figure 11

Oil (USD / barrel)

• The number of transactions for apartments have registered a growth of 21 per cent in May as compared to January this year as per Dubai Land Department (DLD) data.

OPEC Basket Crude Oil Price USD/barrel WTI Crude Oil USD/barrel Brent Crude Oil Price USD/barrel Dubai Average Residential Sales Rate (AED psf) Source: Cavendish Maxwell research

Figure 12

A pa rtm ent p r ic e p e r f o r m a n c e -0.2%

-0.2%

0.8%

-0.2%

-0.2%

-0.4%

-0.3%

-0.4%

0.0%

-0.2% -1%

-2.0%

2,000

-4.0% 1,500

-4.9%

-5.0%

-4.7%

-5.2%

5.2%

-5.3%

-5.1%

-6.0%

-6.2%

1,000

-7.5%

% change

Average price (AED / sq. ft.)

2,500

-8.0% 500 10.1%

0

Q1 2016

Downtown Burj Khalifa (excluding Burj Khalifa)

Palm Jumeirah

Q2 2016

Jumeirah Beach Residences

Dubai Marina

Business Bay

QoQ % change Q1 2016 - Q2 2016

The Views and Greens

Uptown Motor City

Dubai Sports City

Discovery Gardens

International City (Clusters)

-10.0%

-12.0%

12 Month % change Q2 2015 - Q2 2016

Source: Property Monitor Index

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Villas Villa prices decreased marginally in Q2 2016, with an overall average drop of 0.3 per cent.

12 month performance of villa prices in Dubai witnessed a 6.4 per cent decline on average, marginally higher than that for apartments during the same period.

Figure 13

• Prices in established communities such as Arabian Ranches, The Springs and Meadows have registered the highest 12 month declines averaging nearly 9 per cent.

Number of Transactions No. of Apartments

300 250

1000

200 150

500

100 50

• Developer profile and track record has become a significant factor in buyer interest and is likely to continue to be a key determinant.

0 May-16

Mar-16

Jan-16

Nov-15

May-15 Apartment

Sep-15

0 Jul-15

• Data from Dubai Land Department (DLD) revealed a 43 per cent rise in the number of villa transactions in May, compared to January. It is however at a 29 per cent lower level than 12 month highs witnessed in June 2015.

350

1500

No. of Villas

• Compared to Q1 2016, villa prices have witnessed marginal declines ranging from zero to 0.8 per cent.

Villa Source: Dubai Land Department

Figure 14

V il l a pri c e p e r f o r m a n c e 1,800 -0%

-0.2%

-0%

-0.4%

-0.3%

-0.3% -0.8%

-0.3%

-0.2%

-0.4%

0.0% -1.0%

1,400

-2.0% 1,200

-3.0%

1,000 800

-3.8%

-4.0% -4.8%

-4.8%

-5.1%

-5.3%

-5.0% -6.0%

-6.0%

600

-7.0%

400

-7.7% -8.3%

200

-8.7%

Jumeirah Islands

Jumeirah Golf Estates

Q2 2016

The Lakes

The Meadows

Victory Heights

QoQ % change Q1 2016 - Q2 2016

Arabian Ranches

Jumeirah Park

The Springs

-8.0% -9.0%

9.0%

0

Q1 2016

% change

Average price (AED / sq. ft.)

1,600

1.0%

Jumeirah Village Triangle

Al Furjan Villas

-10.0%

12 Month % change Q2 2015 - Q2 2016

Source: Property Monitor Index

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Dubai Residential Market Report - Q2 2016

Rent performance Apartments:

Apartment rents declined 0.7 per cent on average in Q2 2016. With similar declines in both sales prices and rents over this period, investment yields have remained largely unchanged this quarter. Renters have been able to negotiate discounts on new leases, while tenants have found it harder to negotiate lower rents at renewal.

Figure 15

A pa rtm ent R e n t P e r f o r m a n c e - Q 2 2 0 1 6 0.4% 0.0%

0.1%

150,000

-0.3%

100,000

-0.6%

-0.4%

-0.5%

-0.6%

-0.4%

-0.4% -0.8%

-0.8%

-0.8%

50,000

-1.2% -1.5%

h ac Be ah eir m Ju

Studio

-0.8%

es nc ide s Re

1 BR

ns ee Gr e Th

-1.5%

* rs lifa we ha To jK s ur ke B a L wn ah to eir wn m o Ju D

2 BR

FC DI

s iew eV h T

na ari iM ba u D

Average QoQ % change

ay sB es sin u B

i ba Du

ty Ci ts or Sp

rs) te us (cl ty i lC na tio na r e Int

ty Ci or ot M

nd ila ba Du

% change

AED per annum

200,000

-1.6%

*Excluding Burj Khalifa

Source: Property Monitor Index

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Villas:

Villa rents in Dubai have declined 1 per cent on average in Q2 2016

Figure 16

V il l a R ent P e r f o r m a n ce - Q 2 2 0 1 6 -0.5%

-0.5%

400,000 AED per annum

0.0%

0.0%

-0.8%

300,000

-1.0% -1.3%

200,000 100,000

-1.5%

-1.4%

-2.0%

-2.1%

ah eir m Ju

3 BR

-1.6%

-1.6%

4 BR

es tat Es f l Go

s nd Isla h a eir m Ju

5 BR

rk Pa ah eir m Ju

-1.0%

es ak eL h T

ws do ea eM Th

gs rin Sp e Th

ian ab Ar

s he nc Ra

ts igh He y r to Vic

Al

las Vil jan r Fu

% change

500,000

-2.5%

Average QoQ % change Source: Property Monitor Index

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Dubai Residential Market Report - Q2 2016

Residential supply Q2 2016 Completions: Approximately 2,800 residential units have been completed in Q2 2016.

• Nearly 71 per cent of the total number of units initially scheduled for second quarter have been delayed.

• Majority of the completed developments in Q2 2016 were apartment units, with less than 4 per cent being villas and townhouses.

• During the second quarter approximately 12 per cent of initially scheduled projects were placed on hold with no definitive completion date.

• New launches during Q2 2016 were apartment projects located in Al Furjan, Business Bay and Jumeirah Village Circle.

• 22 per cent of the units delivered in the second quarter of 2016 were projects delayed from the first quarter of 2016 and mainly located in International City and Arjan.

H1 2016 Completions - Top 10 locations Figure 17

Units Delivered 200 - 400 401 - 600 601 - 800 801 - 1,000 1,001 - 1,200

5

1,201 - 1,400

9 8

6

10 21 3 7

1 2

4

1.

2.

3.

4.

5.

Dubailand Dubai Silicon Oasis 7 Arjan 6 International City Karama 5

6.

7.

8.

9.

10.

Meydan City Dubai Sports City Al Barsha Barsha Heights Jumeirah Village Circle

Source: Cavendish Maxwell research

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Pipeline H2 2016: There are 34,475 units scheduled to enter the market in the second half of 2016, though delays are likely to greatly reduce actual delivery.

• At the end of 2015, there were approximately 38,000 units initially scheduled for delivery in 2016. This figure, in addition to the 7,734 units delayed from 2015, had brought the total of additional units potentially to be delivered to 46,000.

• As the map below highlights, the majority of additional residential units set to be delivered in second half of 2016 are located primarily in Dubailand followed by Dubai Silicon Oasis and Meydan City.

• Approximately 70 per cent of the market wide pipeline supply for the second half of 2016 are apartments and 30 per cent are villas and townhouses.

• As Q2 2016 came to an end, many developers delayed the delivery of their projects from 2016 to 2017 for several reasons, including tightening liquidity conditions and oil price instability.

H2 2016 Pipeline - Top 10 locations Figure 18

Units Delivered 1,001 - 1,500 1,501 - 2,000 2,001 - 2,500 2,501 - 3,000

10

5

3,001 - 3,500 3,501 - 4,000 4,001 - 4,500 8

4,501 - 5,000 >

- 5,001

3

21 6

9

1 2

4

7

1.

2.

3.

4.

5.

Dubailand 9 Dubai Silicon Oasis 8 Meydan City 7 International City Dubai Marina 6

6.

7.

8.

9.

10.

Jumeirah Village Circle Reem Al Furjan Dubai Sports City Jumeirah

Source: Cavendish Maxwell research

5 4

15

3 2 1

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Dubai Residential Market Report - Q2 2016

Cavendish Maxwell Residential Market Survey Looking back - Q2 2016

vs

Predictions

Reality

The majority of agents surveyed had predicted apartment and villa prices to remain unchanged

Apartment and villa prices have remained largely stable in Q2 2016 with declines of less than 1 per cent on average

The majority of agents had predicted that apartment rents would remain the same during Q2 2016 while for villas, an equal number of agents predicted either stable rents or a decrease of up to 5 per cent

Apartment and villa rents have remained largely unchanged with declines of less than 1 per cent on average.

Majority of agents had predicted new buyer enquiries, seller instructions and agreed sales would increase in Q2

As per data from Dubai Land Department, transaction levels for villas and apartments increased in Q2 compared to Q1

Looking forward - Q3 2016 Figure 19

Figure 20

Q3 2 0 1 6 pri ce o u t l o o k

Q 3 2 0 1 6 re n t s o u t lo o k

Apartments Percentage of agents who predicted apartment prices would:

Apartments Percentage of agents who predicted apartment rents would:

1%

1% 6%

Villas Percentage of agents who predicted villa prices would:

9%

10%

1% 8%

10%

Villas Percentage of agents who predicted villa rents would:

3%

12%

6%

23% 26%

30%

60%

increase by more than 5% decrease by up to 5%

58%

52%

increase by up to 5%

not change

increase by more than 5%

decrease by more than 5%

decrease by up to 5%

29%

increase by up to 5%

53%

not change

decrease by more than 5%

Figure 21

Q 3 2 0 1 6 t r a nsac t io n o u t lo o k Apartments Percentage of agents who predicted new buyer enquiries would:

Villas Percentage of agents who predicted new seller instructions would:

21% 37%

42% 58%

21%

21%

increase

decrease

not change Source: Cavendish Maxwell Residential Market Survey

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Methodology •

•

Sale Prices and rents are derived from Property Monitor, a comprehensive real estate platform established in 2014 to provide real-time, market-wide access to transactions and trends. Working with agencies, banks, developers and corporate investors, it provides a deeper insight into real estate advisory, investment, and lending activities. The average sales price per sq. ft. is based on the Property Monitor Index that incorporates signed contracts, registered transactions, valuations and listings verified by Cavendish Maxwell valuation department.

Cavendish Maxwell Residential Market Survey is a quarterly survey aimed at agents operating in the UAE and is designed to identify the sentiment of the residential market in the region. Forming

a part of the Quarterly Residential Market Report released by Cavendish Maxwell, the research showcases how new enquiries, leasing activity and transactions, among other metrics, changed over the previous quarter as per information from agents. The survey also provides an outlook on the following quarter, with predictions by key market players being studied against real performance.

•

Supply projections for residential projects are based on regular tracking of construction status, new launches, delays, etc. This is carried out through site inspections as well as discussion with developers, contractors, in-house building consultancy team and related government entities.

Development Advisory and Real Estate Research Cavendish Maxwell Advisory and Research team uses its in-depth knowledge of the real estate sector and extensive network to support our clients through the development process, providing strategic consultancy and advice to guide and support investment decisions from concept to delivery.

We have advised on schemes with a gross development value of over AED 3 billion in the last year. Our reports are used internally for business planning purposes and to satisfy the criteria of external financiers and auditors.

Our name is trusted by all major banks across the UAE, supported by our presence on over 30 bank panels across the region.

Our documents and advice meet banking and audit criteria, proven by our presence on over 30 bank panels across the UAE

Core services

Market Research

Due Diligence for Land Acquisition

Asset Management

Property Data

Buyer Profiling

Feasibility Studies

Highest & Best Use Studies

Joint Venture Structuring

Advisory Services

Site Analysis

Disclaimer © Cavendish Maxwell Real Estate Consulting 2016.

The information and analysis contained in this report has been obtained from or is based on information from a variety of sources generally regarded to be reliable and assumptions which are considered reasonable, and which was current at the time of undertaking market research. However, no representation is made, or responsibility accepted by Cavendish Maxwell Real Estate Consulting, in respect of the accuracy or currency of this information. Cavendish Maxwell Real Estate Consulting does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication.

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PROPERTY SERVICES MIDDLE EAST & AFRICA Jay Grant MSc IRRV (Hons) Chairman M: +971 50 192 1658 E: jay.grant@cavendishmaxwell.com

Nigel Armstrong FMAAT Chief Executive Officer M: +44 7825 168 638 E: nigel.armstrong@cavendishmaxwell.com

Miles Phillips BSc (Hons) MRICS ACIArb Partner Head of Operations - UAE M: +971 56 604 2750 E: miles.phillips@cavendishmaxwell.com

Sofia Underabi MRICS AAPI Partner Head of Residential Valuation M: +971 50 435 6527 E: sofia.underabi@cavendishmaxwell.com

Amit Shukla Senior Associate Development Advisory and Real Estate Research M: +971 56 360 3540 E: amit.shukla@cavendishmaxwell.com

Manika Dhama BA (Hons), MBA Research Manager

M: +971 50 482 7938 E: manika.dhama@cavendishmaxwell.com

Also contact us for:

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Commercial Valuation

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Development Advisory and Real Estate Research

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Property Monitor

T: +971 4 453 9525 E: info@cavendishmaxwell.com 2205 Marina Plaza, Dubai Marina, P.O. Box 118624, Dubai, United Arab Emirates 1006 Corniche Bakery Building, Al Firdous Street, Tourist Club Area, Abu Dhabi, United Arab Emirates

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