Dubai Market Overview - Q3 2017

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Lucinda Hart
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1 Dubai Market Overview - Q Sales prices have been relatively steady over the first 9 months of 2017, with average sale prices of apartments remaining stable while villa prices fell by 3%. This is good news for tenants as average rental prices have continued their downward trend due to increased supply. Rents across Dubai decreased by an average of 8% for villas and by 6% for apartments. Meanwhile some landlords are offering more favourable terms such as a higher number of rental cheques, rent-free periods, as well as the payment of agency fees in order to entice tenants. Moving forward we expect tenant demand to pick up with increased government spending as Expo 2020 approaches. Average rental yields stood at 5.47% villas and 7.24% for apartments respectively. At Better Homes the highest number of residential apartments sold were in Dubai Marina, followed by Jumeirah Village Circle and Jumeirah Lake Towers. For leasing the highest number of apartments rented were in Dubai Marina followed by Jumeirah Lake Towers and Jumeirah Beach Residence.

2 Nationality of Better Homes Sellers UK/GB 9.42% Pakistan 3.99% Iran 5.80% UAE 5.80% Others 70.10% India 4.89% Average sales price trend / sq. ft. in Dubai* 1,500 1,400 1,300 1,200 Apartments 1,327 in AED 1,100 1,000 1, Villas Note: Compared to 2016, average sale prices for the first 9 months has increased marginally by 0.37% for apartments and decreased by 3.12% for villas. Sales summary **Average for 9 months of 2017 has the highest number of units transacted followed, by JLT and JVC Reem (Mira) has the highest number of units transacted followed, by Arabian Ranches and the Springs. * Communities include: Business Bay, Downtown Dubai,, Dubai Sports City, Jumeirah Lake Towers, Jumeirah Village Circle, Motor City, Palm Jumeirah, The Greens & The Views. Villas: Arabian Ranches, Green Community, Jumeirah Islands, Jumeirah Park, Jumeirah Village Circle, Jumeirah Village Triangle, The Springs & The Meadows

3 Average rental price of apartments in Dubai* in AED 250k 200k 150k 100k 50k 0 Studio 1-Bedroom 2-Bedroom 3-Bedroom Note: Compared to 2016, average rental prices for 2017 have decreased by -6.87% for apartments. Average rent price - apartments **Average for 9 months of 2017 has the highest number of apartments leased, followed by JLT and JBR * Communities include: Business Bay, Downtown Dubai,, Dubai Sports City, Jumeirah Lake Towers, Jumeirah Village Circle, Motor City, Palm Jumeirah, The Greens & The Views. Average rental price of villas in Dubai* in AED 300k 250k 200k 150k 100k 50k 0 2-Bedroom 3-Bedroom 4-Bedroom 5-Bedroom Note: Compared to 2016, average rental prices for villas in 2017 have decreased by 8.81% Average rent price - villas **Average for 9 months of 2017 Arabian Ranches has the highest number of villas leased, followed by The Springs and The Meadows * Communities include: Arabian Ranches, Green Community, Jumeirah Islands, Jumeirah Park, Jumeirah Village Circle, Jumeirah Village Triangle, The Springs & The Meadows

4 Average rental yield in freehold communities in Dubai* percentage % 5.47% Apartments Villas Note: Average rental yield for apartments stood at 7.24% and 5.47% for villas. ** Average for 9 months of 2017 * Communities include: Business Bay, Downtown Dubai,, Dubai Sports City, Jumeirah Lake Towers, Jumeirah Village Circle, Motor City, Palm Jumeirah, The Greens & The Views. Villas: Arabian Ranches, Green Community, Jumeirah Islands, Jumeirah Park, Jumeirah Village Circle, Jumeirah Village Triangle, The Springs & The Meadows Yield summary According to the Global Property Guide, the average rental yields for apartments in major cities is as follows: 4.28% 2.83% 2.99% 3.05% 3.49% 7.24% Hong Kong Tokyo Frankfurt Paris Barcelona Dubai Source: Global Property Guide Cash payment vs mortgage Cash 83.33% Mortgage 16.67% Note: Cash purchases have increased from 73.70% in 2016 to 83.33% and mortgages have decreased from 26.30% in 2016 to 16.67%, indicating customer preferences for cash purchases.

5 Top 6 searches on Dubizzle in Dubai Sales Rent 1 BR apartment 714,763 searches 1 1 BR apartment 2,816,188 searches 2 BR apartment 704,917 searches 2 2 BR apartment 2,148,558 searches 1 BR, JVC 571,040 searches JVC 3 International City Studio 1,809,071 searches 3 BR villa 366,838 searches Akoya Oxygen 4 Discovery Gardens Studio 1,744,865 searches 2 BR apartment 353,342 searches Downtown Dubai 5 Mirdiff 3 BR villa 1,025,137 searches 3 BR villa 353,342 searches Arabian Ranches 6 The Springs 2 BR villa 724,380 searches Source: Dubizzle

6 Popular units with the most transactions Sales Rent 40% 1-bedroom apartment 32% 24% 17% 2-bedroom apartment Studio 28% 12% 9% 3-bedroom apartment 9% 4% 3-bedroom villa 7% 6% Others 11% About Better Homes: Since we opened our doors in 1986, we have been the region s leading property agency with a service offering that includes residential and commercial sales and leasing, property management, off plan sales and holiday homes. We have 12 branch offices across Dubai, Abu Dhabi and Sharjah; in addition to Oman, Jordan and Qatar and with a Corporate Office located in Business Bay. For more information about Better Homes, please visit bhomes.com For queries or suggestions on this report, please us at customercare@bhomes.com Disclaimer: This report is based on data acquired from the Better Homes database and trusted partners. This publication is the sole property of Better Homes LLC and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Better Homes LLC. Readers are responsible for independently assessing the relevance, accuracy, and completeness of the information in this publication. Better Homes LLC will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication. bhomes.com

Dubai Real Estate Report Q3 2017

Property Review Dubai Real Estate Report Q3 2017 In the Middle East for over 30 Years 2 Property map 3 Sales Rentals 4 Sales Rentals 5 Offices Sales Rentals Dubai Property Map 17 3 To Abu Dhabi 6 27 3