Turkey Real Estate Indices: March 2015 Results

posted @ 12:00am, Wednesday 15 April 2015.

April, 2015

REIDIN Turkey Residential Property Price Indices: March 2015 Results

The residential sales prices for existing homes increased 1.25% in TR-7 cities and increased 0.91% in TR-30 cities during March 2015.

The residential rental prices for existing homes increased 0.83% in TR-7 cities and increased 0.40% in TR-30 cities during March 2015.

REIDIN-GYODER New Home Price Index: March 2015 Results
According to March 2015 results, REIDIN-GYODER New Home Price Index remains increase of 1.12% in 1+1 flat type; increase of 1.39% in 2+1 flat type; increase of 1.23% in 3+1 flat type and increase of 0.14% in 4+1 flat type with respect to the previous month.

According to March 2015 results, REIDIN-GYODER New Home Price Index reveals that there is 1.15% increase in 51-75sqm size; 1.13% increase in 76-100sqm; 1.38% increase in 101-125sqm size; 1.22% increase in 126-150sqm and 0.21% increase in 151sqm and bigger sized properties with respect to the previous month.

According to March 2015 results of REIDIN-GYODER New Home Price Index, “Branded Projects” in Istanbul European side shows 1.37% increase and 0.31% increase in Asian side.

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Renter's Ball: The Dynamics of the Tenancy Market in Dubai

posted @ 12:00am, Tuesday 14 April 2015.

Rents and prices have been strongly correlated where price is a leading indicator of rent with a strong correlation of +0.8. Recent weaknesses in prices have now filtered into the rental market. We believe that the tenancy sector has entered into the period of softening for the medium term.

A dissection of the income distribution of Dubai’s working population suggests that 84% of the working population is tenants (significantly higher than Hong Kong and London) and that income dynamics appear to be mismatched relative to supply dynamics. A further dissection of the demographics reveals that only 38% of the population can afford renting units independently, without any external sources of income. The purchasing power of renters reveals that leasehold areas are better options for their accommodation due to the discount available compared to freehold areas.

A rental comparison between Prime properties and city-wide properties in Dubai reveals a 69% rental differential in apartments and a 77% differential in villa communities. An analysis over a 5 year period of both prime and non prime properties has risen in tandem. However, in the last 12 month non-prime properties have had superior growth rates indicating a strong demand for affordable housing confirming the income dynamic mismatch. Over the next 12-18 months, the affordable housing segment will continue to provide superior yields for investors until the new supply begins to enter into the market causing a dampening effect.

Historically, apartment rentals have underperformed on MBZ road compared to the Sheikh Zayed Road corridor, whereas the opposite has held true in villas. As the migration effect takes hold, MBZ appears to be an increasing destination of choice for new tenants as the level of construction activity gathers pace ahead of the countdown to the world expo 2020. We opine that as destinations for living increase along this corridor, the rental discounts between the MBZ and the Sheikh Zayed Road corridor will converge. As this trend plays out, we opine that rent differentials between the two corridors will converge.

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UAE Residential Market Overview - March 2015

posted @ 12:00am, Thursday 9 April 2015.

APRIL, 2015

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

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