REIDIN United Arab Emirates Residential Property Price Indices: July 2017 Results - Edition:104. August 22, 2017

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1 REIDIN United Arab Emirates Residential Property Price Indices: July 217 Results - Edition:14 August 22, 217

2 REIDIN United Arab Emirates Residential Property Price Indices July 217 Results Dubai Market Analysis Dubai Residential Property Price Indices: Sales Price Indices Dubai Residential Property Price Indices: Rental Price Indices Dubai Gross Rental Yields and Price-to-Rent Ratios Dubai Residential Property Price Indices and Financial Indicators Page Abu Dhabi Market Analysis Abu Dhabi Residential Property Price Indices: Sales Price Indices Abu Dhabi Residential Property Price Indices: Rental Price Indices Abu Dhabi Gross Rental Yields and Price-to-Rent Ratios Methodology and Coverage 25

3 Dubai Residential Property Price Indices Sales Price Indices The Dubai Residential Property Sales Price Index for all residential decreased by.7 points, from to 258.4, which represents a decrease of.29% in July 217. On the other hand, prices decreased.69 % y-o-y. Apartment sales prices registered a decrease in July 217. Prices decreased.23% m-o-m and also decreased.66% y-o-y. Villa sales prices registered a decrease in July 217. Prices decreased.53% m- o-m and also decreased.83% y-o-y. 3

4 Dubai Residential Property Price Indices Sales Price Indices All Residential : -.29% : -.23% : -.52% Jan 217 May 217 Jun 217 Jul Apartment Villa Jan 217 May 217 Jun 217 Jul 23 Jan 217 May 217 Jun 217 Jul (January 23 = 1) 4

5 Dubai Residential Property Price Indices Sales Price Indices -.29% -.23% -.52% Sales Price Indices - -2 Last 1 Month Last 3 Month Last 6 Month Last 1 Year Last 2 Year.%.% -.29% -.23% -.1% -.52% -.29% -.44%.36% -.69% -.66% -.83% % -3.4% % Residential (%) Apartment (%) Villa (%) 5

6 Dubai Residential Property Price Indices Sales Price Indices and Monthly Changes ALL RESIDENTIAL APARTMENT VILLA Month (Jan.23=1) Index Number Index Number Index Number November % % % December % % % January % % % February % % % March % % % April % % % May % % % June % % % July % % % 6

7 Dubai Residential Property Price Indices Rental Price Indices The Dubai Residential Property Rental Price Index for all residential decreased by.8 points, from 93.6 to 92.8, which represents a decrease of.92% in July 217. On the other hand, prices decreased 5.24% y-o-y. Apartment rental prices registered a decrease in July 217. Prices decreased.86% m-o-m and also decreased 4.9% y-o-y. Villa rental prices registered a decrease in July 217. Prices decreased 1.23% m- o-m and also decreased 7.1% y-o-y. 7

8 Dubai Residential Property Price Indices Rental Price Indices All Residential : -.92% : -.86% : -1.23% 9 29 Jan 217 May 217 Jun 217 Jul Apartment Villa Jan 217 May 217 Jun 217 Jul 29 Jan 217 May 217 Jun 217 Jul (January 29 = 1) 8

9 Dubai Residential Property Price Indices Rental Price Indices -.92% -.86% -1.23% Rental Price Indices Last 1 Month Last 3 Month Last 6 Month Last 1 Year Last 2 Year % -.86% -1.23% -2.4% -2.12% -1.54% -2.96% -3.1% -2.21% -5.24% -4.9% -7.1% -8.59% -7.85% % Residential (%) Apartment (%) Villa (%) 9

10 Dubai Residential Property Price Indices Rental Price Indices and Monthly Changes ALL RESIDENTIAL APARTMENT VILLA Month (Jan.29=1) Index Number Index Number Index Number November % % % December % % % January % % % February % % % March % % % April % % % May % % % June % % % July % % % 1

11 Dubai Gross Rental Yields (%) All Residential 7.% 7.4% 7,1 7.1% 7.1% 7, 7.% 5.4% 217 May 217 Jun 217 July Apartment Villa 7,5 7.5% 7.5% 5.5% 7,4 7.4% 5,4 5.4% 5.4% 217 May 217 Jun 217 July 217 May 217 Jun 217 July 11

12 Dubai Price-to-Rent Ratios All Residential , May 217 Jun 217 July Apartment Villa ,9 18, May 217 Jun 217 July 217 May 217 Jun 217 July 12

13 Dubai Residential Property Price Indices & Financial Indicators -1.52% 3.8% -.29% (January 23 = 1) Dubai Residential Property Price Indices & Financial Indicators Jun 217 Jul Gold Price Index Oil Price Index Dubai Residential Property Price Index 13

14 Abu Dhabi Residential Property Price Indices: Sales Price Indices The Abu Dhabi Residential Property Sales Price Index for all residential decreased by.8 points, from 95.9 to 95.1, which represents a decrease of.8% in July 217. On the other hand, prices decreased 7.69% y-o-y. Apartment sales prices registered a decrease in July 217. Prices decreased.81% m-o-m and also decreased 7.75% y-o-y. Villa sales prices registered a decrease in July 217. Prices decreased.82% m-o-m and also decreased 7.52% y-o-y. 14

15 Abu Dhabi Residential Property Price Indices Sales Price Indices All Residential : -.8% : -.81% : -.82% Jan 217 May 217 Jun 217 Jul Apartment Villa Jan 217 May 217 Jun 217 Jul 214 Jan 217 May 217 Jun 217 Jul (January 214 = 1) 15

16 Abu Dhabi Residential Property Price Indices Sales Price Indices -.8% -.81% -.82% Sales Price Indices Last 1 Month Last 3 Month Last 6 Month Last 1 Year Last 2 Year -% -.8% -.81% -.82% -1.8% -1.94% -1.32% -5% -4.33% -4.28% -4.53% -7% -9.5% -7.69% -7.75% -7.52% -9.56% -8.74% -12% % Residential (%) Apartment (%) Villa (%) 16

17 Abu Dhabi Residential Property Price Indices Sales Price Indices and Monthly Changes ALL RESIDENTIAL APARTMENT VILLA Month (Jan.214=1) Index Number Index Number Index Number November % 11.7.% % December % % % January % % % February % % % March % % % April % % % May % % % June % % % July % % % 17

18 Abu Dhabi Residential Property Price Indices Rental Price Indices The Abu Dhabi Residential Property Rental Price Index for all residential decreased by.8 points, from 94.6 to 93.8, which represents a decrease of.9% in July 217. On the other hand, prices decreased 1.19% y-o-y. Apartment rental prices registered a decrease in July 217. Prices decreased 1.6% m-o-m and also decreased 1.45% y-o-y. Villa rental prices registered a decrease in July 217. Prices decreased.3% m-om and also decreased 9.19% y-o-y. 18

19 Abu Dhabi Residential Property Price Indices Rental Price Indices All Residential 1 1. : -.9% : -1.6% : -.3% Jan 217 May 217 Jun 217 Jul Apartment Villa Jan 217 May 217 Jun 217 Jul 214 Jan 217 May 217 Jun 217 Jul (January 214 = 1) 19

20 Abu Dhabi Residential Property Price Indices Rental Price Indices -.9% -1.6% -.3% Rental Price Indices Last 1 Month Last 3 Month Last 6 Month Last 1 Year Last 2 Year % -.9% -1.6% -.3% -1.7% -1.79% -1.39% -6% -8% -4.83% -4.76% -5.14% -11% -1.19% -1.45% -9.19% -1.59% -14% % -13.2% Residential (%) Apartment (%) Villa (%) 2

21 Abu Dhabi Residential Property Price Indices Rental Price Indices and Monthly Changes ALL RESIDENTIAL APARTMENT VILLA Month (Jan.214=1) Index Number Index Number Index Number November % % % December % % % January % % % February % % % March % % % April % % % May % % % June % % % July % % % 21

22 Abu Dhabi Gross Rental Yields (%) All Residential 7.2% 7.4% 7,2 7.2% 7.2% 7,1 7.1% 6.3% 217 May 217 Jun 217 Jul Apartment Villa 7,5 7.5% 6,3 6.3% 7,4 7.4% 7.4% % 6.2% 217 May 217 Jun 217 Jul 217 May 217 Jun 217 Jul 22

23 Abu Dhabi Price-to-Rent Ratios All Residential May 217 Jun 217 Jul Apartment Villa May 217 Jun 217 Jul 217 May 217 Jun 217 Jul 23

24 Abu Dhabi Residential Property Price Indices & Financial Indicators -1.52% 3.8% -.8% (January 214 = 1) Abu Dhabi Residential Property Price Indices & Financial Indicators Jun 217 Jul Gold Price Index Oil Price Index Abu Dhabi Residential Property Price Index 24

25 REIDIN-UAE Residential Property Price Indices Methodology & Coverage REIDIN UAE Residential Property Price Indices (RPPIs) are designed to be a reliable and consistent benchmark of housing sales and rent prices in Dubai and Abu Dhabi. The purpose of the indices is to measure the average differences in house prices in a particular geographic market through a timeline. Methodology and Coverage Monthly REIDIN Dubai and Abu Dhabi RPPIs are calculated based on moving average median prices an approach that is widely used for indexing housing prices which involves median of sales prices of properties in a corresponding region. The median series of sales price data is constructed by taking the median price/sqm of all properties during a certain time period. REIDIN Dubai RPPI employs weighted average of the median prices of areas for the calculation of the monthly index series. The weights used in the methodology are the existing supply of each area which is derived from housing stock and will be updated semi-annually. All Dubai indices are calculated by using the Laspeyres price index formula and a moving average algorithm. On the other hand, REIDIN Abu Dhabi RPPIs are calculated by using the Dutot price index formula (defined as the ratio of the unweighted arithmetic average of the prices in the current period t to base period ) and a moving average algorithm. The official Dubai and Abu Dhabi Real Estate Residential Sales Price Indices provided to Bank of International Settlements (BIS) by the Central Bank of United Arab Emirates (CBUAE) is designed and produced by REIDIN. 25

26 LEGAL NOTICE Although all values, statements and visual materials in this report are provided, indicated and calculated neatly by REIDIN, we make no warranty, assurance or guarantee that materials and values are absolutely accurate. REIDIN highly recommends that this report should not be taken as an endorsement of or recommendation on any participation by any intending investor or any other party in any transaction whatsoever. This information is presented exclusively for use by REIDIN clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of REIDIN.

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