Dubai Residential Market Report Q42015

Dubai Residential Market Report Q42015

Dubai Residential Market Report Q4 2015 Content Price performance Rent performance Residential supply Cavendish Maxwell Residential Market Survey Q4 2015 Sale price movement Q3 2015 Q4 2015 1% 1% Q4 2014 Q4 2015 6% 8% Cavendish Maxwell 2016 www.cavendishmaxwell.com 2

Dubai Residential Market Report Q4 2015 Sale performance Apartments Apartment prices declined, on average, by 1% in Q4 2015, where International City declined slightly faster at 2%. During the last 12 months, apartment price declines varied significantly across Dubai, dropping an average of 6% with peripheral locations such as Discovery Gardens, International City and Motor City declining the most at 9%, 9% and 10% respectively. Figure 1 Apartments sale performance 2,500 0% 1% 1% 1% 1% 1% 1% 1% 1% 1% 2,000 2% 2% Average price AED / sq V 1,500 1,000 6% 4% 6% 6% 5% 4% 6% 4% 6% % change 8% 500 9% 9% 10% 10% 0 Business Bay Discovery Gardens Downtown Burj Khalifa Dubai Marina Dubai Sports City Emirates Living (Views and Greens) InternaOonal City Q3 2015 Q4 2015 QoQ % change 12 month change Jumeirah Beach Residences Q3 2015 Q4 2015 QoQ % change Q3 2015 Q4 2015 12 month % change Q4 2014 Q4 2015 Motor City Palm Jumeirah (Shoreline Apartments) 12% Source: Property Monitor Index Cavendish Maxwell 2016 www.cavendishmaxwell.com 3

Dubai Residential Market Report Q4 2015 Sale performance Villa prices have declined by an average of 1% in Q4 2015, slower than the 2% in Q3 2015. On average, villa prices have declined by approximately 8% in the last 12 months. Prices at more established villa communities such as The Meadows and Springs declined by 12% and 18% respectively as buyers opted to purchase in the newer and upcoming communities. Figure 2 sale performance 1,800 1,600 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0% 2% Average price AED / sq ft 1,400 1,200 1,000 800 600 8% 7% 6% 5% 6% 10% 7% 12% 7% 4% 6% 8% 10% 12% 14% % change 400 16% 200 18% 18% 0 Al Furjan Arabian Ranches Jumeirah Golf Estates Jumeirah Islands Jumeirah Park Jumeirah Village Triangle The Lakes The Meadows The Springs Victory Heights 20% Q3 2015 Q4 2015 QoQ % change Q3 2015 Q4 2015 12 month % change Q4 2014 Q4 2015 Source: Property Monitor Index Cavendish Maxwell 2016 www.cavendishmaxwell.com 4

Dubai Residential Market Report Q4 2015 Rent performance Apartments Apartment rents have slightly declined by 1% in Q4 2015 and approximately 3% during 2015 across Dubai. The rate of decline varies from one development to another with International City rents declining at a higher rate of 2%, similar to the sale price trend in Q4 2015. On average, studio rental rates have increased while one and two bed rents have during Q4 2015. Villa rents have followed a similar trend as apartments with an average drop of 1% in Q4 2015 from Q3 2015 and a 3% decline during 2015. Rents in prime villa communities such as Arabian Ranches, Jumeirah Golf Estates and Jumeirah Islands remained relatively stable in Q4 2015 as in Q3 2015. Rents of three and five bed villas remained stable, whereas four bed villa rents have declined in Q4 2015. Apartments rental performance rental performance Rental rate AED/sq ft/annum Q4 2015 Studio Rental rate 1 bed 2 bed AED/sq ft/annum 3 bed 4 bed 5 bed Q4 2015 Business Bay 97 94 89 Al Furjan 49 42 Discovery Gardens 88 65 Arabian Ranches 69 Dubai Marina 122 111 106 Jumeirah Golf Estates 63 60 Dubai Sports City 96 71 Jumeirah Islands 59 61 International City 72 65 52 Jumeirah Park 64 61 62 Jumeirah Beach Residences 111 116 115 Jumeirah Village Triangle 55 53 Motor City 84 69 The Lakes 76 75 86 Palm Jumeirah (Shoreline Apartments) 111 107 The Meadows 64 62 66 The Greens 147 111 102 The Springs 74 The Views 150 118 107 Victory Heights 75 Figure 3 Source: Property Monitor Index Figure 4 Source: Property Monitor Index Cavendish Maxwell 2016 www.cavendishmaxwell.com 5

Dubai Residential Market Report Q4 2015 Residential supply 2015 Completions Approximately 8,800 additional residential units entered the Dubai market in 2015. Over % of those are apartments with the remainder being villas and townhouses. Major completions in Dubai Sports City, Dubai Silicon Oasis and Dubailand. Pipeline Approximately 7,000 units have been delayed from 2015 to 2016. Excluding those, 30,000 units have been scheduled for delivery in 2016, which may be subject to potential delays. The Dubai government budget for 2016 was increased by 12% to AED 46.1 billion, of which 14% allocated to infrastructure, which shows continued commitment toward the growth of Dubai leading up to 2020. Cavendish Maxwell 2016 www.cavendishmaxwell.com 6

Dubai Residential Market Report Q4 2015 Cavendish Maxwell Residential Market Survey Looking back Q4 2015 sales and rents predictions vs reality 36% of agents surveyed had predicted villa prices to decline by up to 5% Villa prices fell by 1% 40% of agents surveyed had predicted apartment prices to remain unchanged. Apartment prices fell by 1% Majority of agents surveyed had predicted that rents would remain the same for both apartments and villas. Apartment and villa rents declined by 1% Q1 2016 sales outlook Apartments Percentage of agents who predicted apartment prices would: 0% Percentage of agents who predicted villa prices would: 0% 7% 14% 18% 5% Q1 20165 rents outlook Apartments Percentage of agents who predicted apartment rents would: 3% 9% 11% Percentage of agents who predicted villa rents would: 2% 14% 5% 46% 33% 39% 38% 34% 43% 34% 45% increase by more than 5% increase by up to 5% not change decrease by up to 5% decrease by more than 5% increase by more than 5% increase by up to 5% not change decrease by up to 5% decrease by more than 5% Figure 8 Source: Cavendish Maxwell Residential Market Survey Figure 9 Source: Cavendish Maxwell Residential Market Survey Cavendish Maxwell 2016 www.cavendishmaxwell.com 7

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