With an expanding significance of freehold in Dubai, land prices are expected to rise

posted @ 12:00am, Monday 20 October 2014.

As Dubai’s real estate market enters its third cycle of 2014, the big question many investors and developers are asking is: Where to build?

An integral part of the UAE’s real estate transformation and cycles can be analyzed through its Land Dynamics: Land versus End Units. Through our research, we compare the land to end unit prices in both residential and commercial transactions, and analyze transactional activity in both segments, to where the most popular areas to build within the Dubai Emirate.



Where to Build for Residential units?
A couple of factors will influence this decision:
First an analysis of Q-Ratios* shows that the historical average is 1.3, which is 40% higher than current levels, coupled with our YoY analysis of this transactional activity shows a dip of 16-17% in both segments.

Creating sensitivity between transactional activity and prices is higher for end-units compared to land, leading to a potential surge of land prices.
With tapering off of end-unit prices, developerswill rush to areas with higher Q-Ratios to experience higher appreciation of land prices, and trade away expected super normal profits.
To date, DWC has the highest Q-ratio, implying that land prices will continue to gather momentum, especially towards the build up for the World Expo 2020
    
Where to Build for Commercial Units?
A supply analysis of commercial projects in Dubai shows that the bulk of supply expected to hit the market will be on Sheikh Zayed Road. As Dubai’s population begins to expand inward with new supply focused on the Mohammad bin Zayed Corridor, an uptick for DED commercial demand will rise with however a notable acute shortage of office supply especially in the DED segments.

While comparing Replacement Value of DED Offices and of Q-Ratio’s between commercial areas on Mohammad bin Zayed road and Sheikh Zayed road, we notice the former to be a more lucrative option for developers as they have a higher Q-Ratio.The major repositories that offer DED licenses will be Majan, Arjan, liawan, and JVC, driven by the expansion of the real estate, legal, and banking sectors

Ahmet Kayhan, CEO of REIDIN.commented: “While our joint research with UNITAS Group shows that the end-unit prices have surpassed their peak of 2008, land prices are still at 50% of its peak levels. Even as end unit prices stabilize, land prices are expected to rise and  developers will accelerate construction and offer units along the Mohammad Bin Zayed Road. Developments for offices and residential units along this corridor are expected to rise, giving birth to a more sustainable affordable housing segment in line with the vision of the Dubai Government.”


*The Q-Ratio shows helps developers analyze their return on equity for their projects, a higher Q-Ratio implies a higher return and vice-versa.

Click here to read the full report: http://bit.ly/1sGfoQ5


About REIDIN - Real Estate Information

REIDIN is the leading real estate information company focusing on emerging markets and offers intelligent and user-friendly online information solutions helping professionals access relevant data and information in a timely and cost effective basis.

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About Unitas
Unitas believes in in-depth planning and discipline as a mechanism to identify and exploit market discrepancy and capitalize on diversified revenue streams. Our purpose is to manage, direct, and create wealth for our clients.
 
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Fax. +9714 447 72 21
www.unitasconsultancy.com
info@unitasconsultancy.com

REIDIN.com Turkey Real Estate Indices: September 2014 Results

posted @ 12:00am, Wednesday 15 October 2014.

October, 2014

REIDIN.com Turkey Residential Property Price Indices: September 2014 Results

The residential sales prices for existing homes increased 1.61% in Turkey overall, 0.55% in Adana, 0.89% in Ankara, 2.25% in Antalya, 0.09% in Bursa, 2.14% in Istanbul, 1.26% in Izmir and 1.12% in Kocaeli during September 2014.


The residential rental prices for existing homes increased 1.89% in Turkey overall, 2.19% in Adana, 0.86% in Ankara, 2.88% in Antalya, 1.34% in Bursa, 2.16% in Istanbul, 1.66% in Izmir and 1.48% in Kocaeli during September 2014.





REIDIN-GYODER New Home Price Index: September 2014 Results
According to September 2014 results, REIDIN-GYODER New Home Price Index shows increase of 0.07% in 1+1 flat type; decrease of 0.58% in 2+1 flat type; increase of 0.53% in 3+1 flat type and increase of 0.94% in 4+1 flat type with respect to the previous month.

According to September 2014 results, REIDIN-GYODER New Home Price Index reveals that there is 0.14% increase in 51-75sqm size; 0.14% increase in 76-100sqm; 0.52% decrease in 101-125sqm size; 0.66% increase in 126-150sqm and 0.94% increase in 151sqm and bigger sized properties with respect to the previous month.


According to the results of REIDIN-GYODER New Home Price Index, in September 2014 there is 0.27% increase with respect to the previous month and in compliance with September 2013 there is 7.02% increase.


According to September 2014 results of REIDIN-GYODER New Home Price Index, “Branded Projects” in Istanbul European side shows 0.40% increase and 0.44% increase in Asian side.




To read/download the full report click here

UAE Residential Market Overview - September 2014

posted @ 12:00am, Monday 13 October 2014.


SEPTEMBER, 2014



For more UAE Residential Market Data and other data series visit REIDIN

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