UAE Residential Market Overview - June 2015

posted @ 12:00am, Tuesday 7 July 2015.


JULY, 2015



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Dubai: The Signal and the Noise

posted @ 12:00am, Friday 3 July 2015.

A supply/demand analysis of Dubai’s real estate shows that price action has followed periods of imbalance between the two. In 2008, as supply exceeded demand, prices adjusted dramatically lower, and remained on a downward trajectory, until demand started to exceed supply in 2011. The upward price incline continued till 2014, at which point it appeared as if another inflection point had been reached; this coincided with expectations of supply once again outpacing demand for the year.



However, the fears of a huge amount of oversupply this time around maybe over exaggerated as the completion rate of projects has been 61% in the last 3 years. This lag could possibly lower the surplus pushing prices upwards.

A micro structure price analysis reveals that prime properties have had the greatest correction (26%), whereas the affordable segment had fallen the least (13%). The different rates of price decreases can be correlated to the degree of mismatch of supply/demand in each individual strata. This corresponds to the hypothesis that the real estate market had become top heavy.

The price action of Dubai’s real estate market will be greatly influenced by the rate of completion of on-going projects. If the rate falls below 60% we opine that the lopsidedness will cause prices to trend upwards. However, if developers stay on course and deliver projects as per schedule, the variety of options for buyers and rents will force prices/rents to fall further. This trend will be varying in each individual strata according to its individual supply/demand dynamics. 

To download the full report click here: http://content.reidin.com/PublicReports/THESIGNALANDTHENOISE.PDF

Dubai/Abu Dhabi Residential Property Price Indices: May 2015 Results

posted @ 12:00am, Tuesday 30 June 2015.

June, 2015


Dubai Residential Property Price Indices: Sales Price Indices
The Dubai Residential Property Sales Price Index for all residential decreased by 3.6 points, from 278.4 to 274.8, which represents a decrease of 1.29% in May 2015. On the other hand, prices decreased 5.7% y-o-y.

Apartment sales prices registered a decrease in May 2015. Prices decreased 1.19% m-o-m and also decreased 6.8% y-o-y.

Villa sales prices registered a decreased in May 2015. Prices decreased 1.72% m-o-m and also decreased 0.8% y-o-y.




Dubai Residential Property Price Indices: Rental Price Indices
Residential property prices in Dubai rental market decreased by 0.4 points, from 103.1 to 102.7, which represents a decrease of 0.37% in May 2015. On the other hand, rental prices increased 1.0% y-o-y.

Apartment rental prices show a decrease on a m-o-m basis in May 2015. Prices decreased 0.44% m-o-m but increased 1.2% y-o-y.

Villa rental prices registered a decrease on a m-o-m basis in May 2015. Prices decreased 0.44% m-o-m but unchanged y-o-y.






Abu Dhabi Residential Property Price Indices: Sales Price Indices
The Abu Dhabi Residential Property Price Index for all residential decreased by 0.2 points, from 82.0 to 81.8, which represents a decrease of 0.27% in May 2015. On the other hand, prices decreased 2.3% y-o-y.

Apartment sales prices registered a decrease in May 2015. Prices decreased 0.52% m-o-m and decreased 4.5% y-o-y.

Villa sales prices registered an increase in May 2015. Prices increased 0.08% m-o-m but decreased 1.2% y-o-y.




Abu Dhabi Residential Property Price Indices: Rental Price Indices
Residential property prices in Abu Dhabi rental market increased by 0.3 points, from 67.0 to 67.3, which represents an increase of 0.37% in May 2015. On the other hand, prices increased 5.1% y-o-y.

Apartment rental prices registered an increase in May 2015. Prices increased 0.18% m-o-m and increased 2.8% y-o-y.

Villa rental prices registered an increase in May 2015. Prices increased 0.68% m-o-m and increased 7.5% y-o-y.




To read the full report click here