Q4 2016 Dubai Residential Market Report by cavendish_maxwell

Dubai Residential Market Report

2016

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Dubai Residential Market Report - Q4 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 regionâ&#x20AC;&#x2122;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; 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 Dubai. 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

Quarter on Quarter % change

2017 Pipeline

-0.3% -0.2%

61,000 scheduled units

12 month % change

Q4 2016 Completions

-3.4% -3.6%

3,500 units

Content Macro-economic factors

Rent performance

Investment climate

Residential supply

Price performance

Residential Market Survey

ÂŠ Cavendish Maxwell 2017 | www.cavendishmaxwell.com

Dubai Residential Market Report - Q4 2016

Macro-economic factors Figure 1

Dubai annual inflation - 2016 2.5% 2.5

127.0

2.0% 2.0

126.0

1.5% 1.5

• Housing and utility costs rose 4.2% from a year earlier in November while food and beverage prices climbed 2.3%.

125.0

1.0% 1.0

124.0

0.5% 0.5

July

Inflation Rate

Real GDP estimates Real growth GDP growthtrend trend andand estimates 7.1%

8.0% 7.0% 6.0% 5.0%

4.9%

4.7% 3.1%

4.0%

4.0% 2.3% 2.5%

3.0%

3.7% 3.1% 3.4%

2.0% 1.0% 0.0%

2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016E2017E2018E2019E2020E 2016E 2017E 2018E 2019E 2020E

Source: IMF, National Bureau of Statistics, Statistics Centre Abu Dhabi, Dubai Department of Economic Development

Figure 3

Currency movement Currency Movement 70

1.2

1 1.0

66 64

0.8

0.6

60 58

0.4

0.2

USD/EUR

Nov-16

Jul-16

52 Sep-16

May-16

Jan-16

USD/GBP

Mar-16

Nov-15

Jul-15

Sep-15

May-15

54 Jan-15

0.0 0

Mar-15

• Meanwhile, analysts estimate a rocky 2017 for the UK pound sterling as policymakers begin the process of European Union exit. Article 50 (that governs the exit) is likely to be “triggered” as early as the first quarter of 2017.

June

USD/INR

• The decision to raise interest rates for the second time in a decade sent the US dollar to a 14-year high against the euro in mid December.

May

Figure 2

Nov-14

The strengthening of the US dollar has made the UAE dirham stronger relative to other foreign currencies thus impacting inflow of capital into tourism, retail and real estate sectors from the economies of Europe, India and Russia.

Apr

Source: Dubai Statistics Centre

Jul-14

• The most recent estimates of debt levels for Dubai in April 2016, estimated total public and private sector debt at about 70% of GDP, a comparatively high figure albeit lower than peaks recorded in 2009. An updated assessment of Dubai’s debt levels are expected from the IMF in the spring of 2017.

Mar

*2014=100

Sep-14

• The IMF’s regional director highlighted that debt levels in the UAE economy remain a key indicator, especially in Dubai where debt levels have been relatively high since the 2009 global financial crisis.

Feb

CPI

May-14

• Overall growth in the UAE is expected to decline to 2.3% in 2016, down from 4% in 2015 due to the effect of lower oil prices on the economy. In 2017 the IMF expects a slight recovery in GDP to 2.5%.

Jan

USD/Euro, GBP

As of October, the International Monetary Fund (IMF) forecast Dubai’s GDP to grow by 3.3% in 2016, down from the 3.5% growth of 2015, before recovering to 3.6% in 2017.

0.0% 0.0

123.0

• In August, the Dubai Government changed the base year for the consumer price index to 2014 from 2007 and adjusted the consumer basket. This had the effect of raising recent inflation rates slightly.

Inflation rate Inflation rate

Dubai Annual Inflation - 2016

128.0

CPI CPI

Dubai consumer inflation rose 3% in November and 2.7% in October on a year-on-year basis.

USD/INR

Source: Cavendish Maxwell research

Figure 4

Petrol & prices Diesel Prices UAE petrol &UAEdiesel 2.4 2.2 AED/ litre

1.8 1.6 1.4 1.2 1.0

• The Ministry of Energy announced that petrol and diesel prices will rise in January by 6.1% to 7.1% for all types of fuel.

• The Iraqi Oil Minister also indicated that the country would cut supply by 200,000-210,000 bpd from January.

60 50 40 30 20

Brent

West Texas

Dec-16

Nov-16

Oct-16

Sep-16

Aug-16

Jul-16

Jun-16

10 May-16

• Saudi Arabia, which is OPEC’s largest producer, has agreed to bear a significant portion of the cuts.

Global oil prices Global Oil Prices

Feb-16

• The official start date for countries to begin cuts was Jan 1, with OPEC and non-OPEC producers expected to lower production by almost 1.8 million barrels per day (bpd).

Source: UAE Ministry of Energy Figure 5

Jan-16

Oil prices have risen nearly 25% since mid-November, following the landmark deal by OPEC members to begin supply cuts.

Unleaded Petrol 95 Diesel

USD / barrel USD / barrel

• Super 98 prices will rise to AED1.91 up 6.1% from December; Special 95 will cost AED1.80, up 6.5% and E Plus will cost AED1.73, up 6.7%. Diesel will cost AED1.94, up 7.1%.

Unleaded Petrol 98 Unleaded Petrol 91

Apr-16

• Petrol prices in the UAE in December decreased by an average of 5% in comparison to November and have increased by 1% since January 2016.

2.0

Mar-16

Fuel prices decreased in December with Super 98 at AED1.8/litre, Special 95 at AED1.69/litre and E Plus91 at AED1.62/litre. The diesel price was AED1.81/litre for December.

OPEC

Source: Cavendish Maxwell research

Dubai Residential Market Report - Q4 2016

Investment climate • Transaction volumes have declined nearly 19% in comparison to 2015. However, building transactions for November 2016 were higher than those during other months of 2016 and 2015.

The Dubai Land Department recorded approx. 14,500 transactions in 2016 until mid-December.

• In Q4 2016 (until mid-December) there were approximately 2,361 transactions for completed buildings, with more than 300 transactions in Dubai Marina and International City. Figure 6

Transaction Volume

Real estate transactions in Dubai Real Estate Transactions in Dubai 1,600 1,400 1,200 1,000 800 600 400 200 0

17%

-13%

-42% Jan-16

-33%

Feb-16

Land

May-16 Building

Jun-16 Unit

-20% -30%

-38% Jul-16

Aug-16

Sep-16

-40% Oct-16

Nov-16

Fitch, the outlook for UAE’s banking system is “stable” and comparatively resilient to asset quality deterioration resulting from prolonged periods of weak oil prices.

-50%

Dec-16

YoY % Change in Total Volume

Note: Data for Dec is until 18th

According to rating agencies Moody’s and

-10%

-24%

-28%

Apr-16

10%

-1%

-9%

-13%

-26%

Mar-16

20%

14%

Source: Dubai Land Department Figure 7

UAE banking sector indicators UAE banking sector indicators 100.0% 80.0% 60.0% 40.0%

• Profitability and capitalisation levels of UAE banks are expected to “provide protection against rising problem loans, while sufficient liquidity will cushion against reduced flows of government deposits into the banking system as lower oil prices impact government revenues” according to Moody’s report, entitled “Banking System Outlook -- United Arab Emirates” released in October. • Problem loans are expected to increase to around 5.5% of total loans by mid-2017, significantly lower than the 2011 peak of 10.6%.

20.0% 0.0% 2012

2013

2014

2015

2016*

Problem loans to gross loans

Loan loss reserves to problem loans

Tier 1 capital ratio

Net interest margin

*denotes preliminary data

Source: Moody’s Investors Service

The US Federal Reserve increased interest rates by a quarter point to 0.75% in December. • In response the Central Bank of UAE raised interest rates applied to certificates of deposits. As a result, the Eibor (Emirates Interbank Offered Rate) also edged upward over the same period, thus increasing the cost of borrowing in the UAE interbank market. • The USD Libor benchmark rate charged by some of the world’s leading banks for short-term loans also rose following the rate hike. • The impact on mortgage repayments are likely to be more pronounced if the US Federal Reserve continues to increase rates in 2017.

Figure 8

Dubai’s AED47.3 billion budget for 2017 was approved in December, marking an increase of 2.6% from 2016.

2017 Budget – Revenue breakdown 2% 6% 16%

Government fees Customer revenues

• Most notably, infrastructure spending is up by 27% compared with 2016.

Oil revenues

• The 2017 budget has a deficit of AED 2.5 billion, which represents 0.6% of Dubai’s GDP.

Government investment returns

76%

• Overall 2017 revenue is anticipated to decline compared with 2016. However, government revenue from fees is expected to increase by 6% on the back of economic growth and a sectoral push in areas such as tourism and retail. • Oil revenues are expected to represent 6% of total government revenues in 2017.

The Dubai Financial Market (DFM) reported a decline of 22% in Q3 2016 net profits, which stood at AED35.4 million.

Source: Government of Dubai Figure 9

Share price performance – Real estate equities Share Price Performance – Real estate equities 9.00

• Revenues reached AED81.1 million compared to AED89.2million in Q3 2015.

8.00

• Net profit for the first nine months of 2016 was AED175 million, a 29% decrease over the same period in 2015.

6.00

• Meanwhile, institutional investors increased their participation in the market from 25.3% of the trading value during the first nine months of 2015 to 28.3% during the same period of 2016.

4.00 3.00 2.00

Dec-16

Nov-16

Oct-16

Sep-16

Aug-16

Jul-16

Jun-16

May-16

Apr-16

0.00

Mar-16

1.00 Feb-16

• During the same period, The DFM added 2,627 new investors and 418 institutions, raising the total number of registered investors to 839,000. Also, foreign investors’ ownership in DFM increased to 22.2% during the period.

5.00

Jan-16

AED

• Value of trades on DFM declined 31% in the first nine months at AED91.2 billion.

7.00

Arabtec Holding

Deyaar

Drake & Scull

Emaar

Union Properties

Damac

Source: Cavendish Maxwell research

The UAE ranked 26th in the World Bank Doing Business report for 2017 and was also listed among the ten most improved economies for the past year. The report highlighted improvements in ease of starting a business, dealing with construction permits, getting electricity, registering property and protecting minority investors. These factors were studied in comparison to the 2015/16 indicators. Factor

Reforms in 2016

Starting a business

Streamlining name reservation and articles of association notarization and merging registration procedures with the Ministry of Human Resources and General Pensions and Social Security Authority.

Dealing with construction permits

Implementing risk-based inspections and merging the final inspection into the process of obtaining a completion certificate.

Getting electricity

Implementing a new program with strict deadlines for reviewing applications, carrying out inspections and meter installations. The UAE also introduced compensation for power outages.

Registering property

Increasing the transparency at its land registry.

Protecting minority investors

Increasing shareholder rights and role in major corporate decisions, clarifying ownership and control structures and requiring greater corporate transparency.

Dubai Residential Market Report - Q4 2016

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Â© Cavendish Maxwell 2017 | www.cavendishmaxwell.com

Dubai Residential Market Report - Q4 2016

Price performance Apartments Apartment prices in Dubai declined by 0.3% on average during Q4 2016 and declined by an average of 3.4% over the last 12 months.

Figure 10

• Residential property prices in Dubai have declined by over 15% since highs seen in Q2 2014. • Stronger US dollar, relatively lower oil prices and resultant liquidity conditions have impacted the purchasing power of regional and foreign investors traditionally active in the Dubai real estate market, such as GCC nationals and buyers from countries like India, UK, Russia.

Dubai Residential Prices vs. Oil

liO .sv se cirP lai t ne diseR

054 ,1

1,450

100

120 120

004 ,1

1,400

1,450 1,450

100 100

053 ,1

1,350

1,400 1,400

80 80

003 ,1

1,300

1,350 1,350

60 60

052 ,1

1,250

1,300 1,300

40 40

002 ,1

1,200

1,250 1,250

120

• According to Dubai Land Department data for October and November, Business Bay and Dubai Marina accounted for the highest number of completed unit sales.

Dubai residential prices oil DubaiResidential Residential Pricesvs. vs. Oil Oil Dubai Prices vs.

1,200 20 1,200 20 051 ,1 1,150 Q1 0 Q2 4Q 3Q 2Q 1Q 1,150 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 4QQ4 3Q 2Q 1Q 1,150 20142014201420142015201520152015201620162016 6 12016 0 26 1 0 26 1 0 26 1 0 25 1 0 25 1 0 25 1 0 25 1 0 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q1 Q2 Q3 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2016 2014 2014 20142014 2014 2015 2015 2015 20152016 20162016 20162016 2016 2014 2014 2014 2014 2015 2015 OPEC Basket Crude Oil2015 Price2015 USD/barrel l err a2016 b /D SU ec irP l iO edurC t eks Dubai Average Sales Rate )fspsf) p DE A( et aR se la S l a itn ed is eR eg ar e OPECResidential BasketCrude Crude Oil Price Price(AED USD/barrel OPEC Basket Oil USD/barrel Dubai Average Average Residential Residential Sales SalesRate Rate (AED (AED psf) psf) Dubai

Source: Cavendish Maxwell research Figure 11

A pa rtm ent p r ic e p e r f o r mApartment ance

price performance

2,500

Average price (AED / sq ft) Average price AED / sq ft

0.0%

-0.1%

-0.4%

-0.3%

-3.2%

-3.1%

-0.5%

-0.2%

-1.6%

2,000

1,500

0.0%

-0.2%

-3.5%

-2.0% -3.3%

-3.4%

-3.8%

-4.8%

-3.5%

-3.4%

-4.2%

-4.0% -6.0%

1,000

-8.0% 500

-10.0% -12.0%

Q3 2016

*Excluding Burj Khalifa

0.0%

% change

-0.1%

Q4 2016

QoQ % change Q3 2016 - Q4 2016

12 month change Q4 2015 - Q4 2016

Source: www.propertymonitor.ae

Villas Villa prices decreased marginally in Q4 2016, with an overall average drop of 0.2%. Over the last twelve months villa prices have declined by 3.6% on average.

• Prices in Arabian Ranches, Meadows and Al Furjan have registered the highest twelve month declines. ab u D

• Larger units in peripheral areas that have limited amenities and infrastructure are expected to fare worse than smaller units in developed areas with quality amenities and infrastructure. 021

01 • Existing 0offerings are primarily catering to the mid to high income groups and as the market matures developers will need to provide products to a wider segment of the market. New launches in the ‘affordable segment’ have been announced in 2016 and these are expected to be handed over 08 2018-19 onwards. 06

4 • Marginal0declines are expected to continue in 2017 and a turnaround will be largely dependent on oil prices and US dollar movement. 02

• Residential demand is primarily driven by job growth for expats and redundancies in the high income jobs have kept net job growth at low levels. 0 In comparison, residential supply continues to expand, albeit at slower rates than pre-2009 and 2013-14 levels.

4Q 3Q 2Q 1Q 4 1 0 24 1 0 24 1 0 24 1 0 2 B C EPO A i abuD

Figure 12

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

-0.3%

-0.1%

Villa price performance -0.2%

-0.2%

-0.3%

-0.1%

0.0%

-0.1%

-1.0%

1,400

-2.1%

1,200 1,000

-2.7%

-3.1%

-2.0%

-2.3%

-3.0%

-3.4%

800

-4.0%

-4.3%

600 400

-5.5%

% change

Average priceprice AED(AED / sq /ftsq ft) Average

1,600

0.0%

-4.7%

-5.8%

-5.0% -6.0%

200

-7.0%

0 Jumeirah Islands

Jumeirah Golf The Lakes Estates

Q3 2016

Q4 2016

The Meadows

Victory Heights

Arabian Ranches

QoQ % change Q3 2016 - Q4 2016

Jumeirah Park

The Springs

Jumeirah Village Triangle

Al Furjan Villas

12 month change Q4 2015 - Q4 2016

Source: www.propertymonitor.ae

Dubai Residential Market Report - Q4 2016

Rent performance Apartments:

Apartment rents declined between 0.4% and 2.2%, with an overall average decrease of 1.1% during Q4 2016. Investment yields for key apartment communities stand at 7.5% on average this quarter.

Figure 13

A pa rtm ent re n t p e r f o r m a Apartment n ce - Rent Q 4Performance 2 0 1 6 - Q3 2016

AED per annum

200000 180000 200000 200,000 160000 180000 180,000 140000 160000 160,000 120000 140000 140,000 100000 120,000 120000 100,000 100000 80000 80,000 80000 60000 60,000 60000 40000 40,000 40000 20000 20,000 20000 00

0.0%

Apartment Rent Performance - Q4 2016

00% -0.4%

-01%

-1.4%

-01%

-0.9%

-0.2% 0.0% -0.4%

-01%

-0.9%

-1.0%

*Excluding Burj Khalifa

-1.1%

-01%

-1.0%

-0.6%

-0.8%

Studio

-01%

-01% -01%

-01%

Studio

Figure 14

-01%

1 BR

2 BR

-1.8%

-0.5% -0.6%

-0.8%

-0.8% -1.0%

-01% -01%

-2.2%

-01% -2.1%

-1.0% -1.5% -1.2%

-2.0% -1.4% -1.6% -2.5%

Average QoQ% Change c

Average QoQ% Change

Source: www.propertymonitor.ae

Gro s s i nv es t m e n t y i e ld -Gross A pInvestment a r t meYield n t -s--Apartments Gross Investment Yield Apartments Gross Investment Yield Apartments 12.00% 12.00% 12.00% 10.00% 10.00% 8.00% 8.00% 6.00% 6.00% 4.00% 4.00% 2.00% 2.00% 0.00% 0.00%

Q3 2016 Q3 2016 Q2 2016 Q2 2016 *Excluding Burj Khalifa

Q4 2016 Q4 2016 Q3 2016 Q3 2016 Source: www.propertymonitor.ae

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Villas:

Villa rents in Dubai have declined 1.1% on average in Q4 2016, with investment yields for villa communities averaging 5.08% this quarter.

Figure 15

V il l a rent p e r f o r m a n ce â&#x20AC;&#x201C; QVilla 4 2Rent 0 1Performance 6 - Q4 2016 0.0%

500,000

0.0%

-0.5%

AED per annum

400,000

300,000

-0.5%

-0.9%

-1.0%

-1.1%

-1.5%

200,000

-1.7% 100,000

Jumeirah Islands

-2.0%

-2.2%

-2.3% Jumeirah Golf Estates

-0.5%

Jumeirah Park 3 Bed

The Lakes 4 Bed

The Meadows 5 Bed

The Springs

Arabian Ranches

-2.0%

Victory Victory Heights Al Furjan Villas Heights

-2.5%

Average QoQ % Change

Source: www.propertymonitor.ae Figure 16

G ros s i nv est m e n t y i e ld - V Gross ilGross lasInvestment InvestmentYield Yield - -Villas Villas 8.00% 8.00% 7.00% 7.00% 6.00% 6.00% 5.00% 5.00% 4.00% 4.00% 3.00% 3.00% 2.00% 2.00% 1.00% 1.00% 0.00% 0.00%

The TheSprings Springs Victory VictoryHeights HeightsArabian ArabianRanches Ranches The TheLakes Lakes

Jumeirah JumeirahPark Park AlAlFurjan FurjanVillas Villas The TheMeadows Meadows Jumeirah JumeirahGolf Golf Jumeirah JumeirahIslands Islands Estates Estates

Q3 2016 Q3 2016 Q3 2016

Q4 2016 Q4 2016 Q4 2016 Source: www.propertymonitor.ae

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Dubai Residential Market Report - Q4 2016

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Dubai Residential Market Report - Q4 2016

Residential supply Q4 2016 Completions: Approximately 3,500 residential units have been completed during Q4 2016, taking the total completions for the year to nearly 16,400 units.

• Nearly 84% of the total number of units completed in Q4 were apartments, with the majority of them located in Silicon Oasis and Dubailand.

• Another Dubailand launch was the Miraclz Tower by Danube, featuring 591 fully furnished apartments ranging from studios to twobeds.

• 58% of the units delivered in Q4 2016 were projects delayed from the first three quarters of 2016.

• Select Group launched the Studio One project in Dubai Marina, featuring studio, one bed and two bedroom apartments. The anticipated completion date is December 2018.

• New launches during Q4 2016 include the affordable housing project Rahaba Residences by Dubai Properties, located in Dubailand. The first phase of the project will have 200 studio units of sizes ranging from 27 to 36 square metres.

Q4 2016 completions - Top 5 locations Figure 17

Units delivered 800 - 1,200 1,200 - 1,600 1,600 - 2,000 2,000 - 2,400 2,400 - 2,800 2,800 - 3,200

3 10 21

1 2

1. 2. 3. 4. 5.

Dubailand Dubai Silicon Oasis Jumeirah Village Circle International City Al Furjan 6

Source: Cavendish Maxwell research

5 4

3 2 1

Pipeline 2017: There are about 61,000 units scheduled to complete in 2017, though delays are likely to greatly reduce actual delivery.

• As the map below highlights, the majority of residential units set to be delivered in 2017 are located in Dubailand followed by Business Bay and Dubai Sports City.

• Apartments comprise approximately 76% of the 2017 scheduled supply. • Nearly 13,000 units have been delayed from 2016 to 2017.

2017 pipeline - Top 5 locations Figure 18

Units planned 3,000 – 3,500 3,500 – 4,000 4,000 – 4,500 4,500 – 5,000 5,000 – 5,500 5,500 – 6,000

6,000 – 6,500 6,500 – 7,000 5

>7,000

10 21 4

1. 2. 3. 4. 5.

Dubailand 9 Business Bay 8 Dubai Sports City 7 Jumeirah Village Circle Meydan 6 City

Source: Cavendish Maxwell research

5 4 3

Dubai Residential Market Report - Q4 2016

Cavendish Maxwell Residential Survey Looking back - Q4 2016

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 Q4 2016 with average declines of 0.3% and 0.2% respectively.

The majority of agents had predicted that apartment and villa rents would remain the same during Q4 2016.

Apartment and villa rents have remained largely unchanged with average declines of 1.1%.

Majority of agents had predicted new buyer enquiries, seller instructions and agreed sales would increase in Q4.

According to the Dubai Land Department, transaction levels have increased in Q4 compared to the previous quarter.

Looking forward - Q1 2017

Figure 19

Figure 21

Q 1 20 1 7 pri c e o u t l o o k Apartments Percentage of agents who predicted apartment prices would: 2% 6%

Q 1 2 0 1 7 t r an sact ion o u t lo o k

Villas Percentage of agents who predicted villa prices would: 11%

16%

Percentage of agents who predicted new buyer enquiries would:

3% 14%

26%

24% 26%

11%

46%

52%

Increase by more than 5%

Increase by up to 5%

63%

Not change

Decrease by up to 5%

Decrease by more than 5%

Percentage of agents who predicted new seller instructions would:

Source: Cavendish Maxwell Residential Market Survey

Figure 20

28%

Q 1 20 1 7 rent s o u t l o o k Apartments Percentage of agents who predicted apartment rents would: 2%

13%

Villas Percentage of agents who predicted villa rents would: 3%

5% 16%

59%

Percentage of agents who predicted agreed sales would:

13%

24% 32%

34% 55%

45%

11%

53%

Increase by more than 5%

Increase by up to 5%

Not change

Decrease by up to 5%

Decrease by more than 5%

Increase

Decrease

Remain the same

Source: Cavendish Maxwell Residential Survey

ÂŠ Cavendish Maxwell 2017 | www.cavendishmaxwell.com

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 & listings verified by Cavendish Maxwell valuation department. Cavendish Maxwell Residential Market Survey is a quarterly survey aimed at agents operating in UAE and is designed to identify 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’s 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.

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

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.

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 and Property Monitor 2017. 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 or Property Monitor, in respect of the accuracy or currency of this information. Cavendish Maxwell and Property Monitor do not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication.

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: +971 54 355 0772 E: nigel.armstrong@cavendishmaxwell.com

Miles Phillips BSc (Hons) MRICS ACIArb Partner 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

Kaveh Samsamy MEng Head of Regional Development M: +971 55 9232932 E: kaveh.samsamy@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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Machinery and Business Assets Valuation

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Project and Building Consultancy

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Property Monitor

T: +971 (0) 4 453 9525 E: info@cavendishmaxwell.com +971 (0) 2 448 4677 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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