UAE IndexFocus February 2010 Real Estate Sector Analysis: Residential

posted @ 12:00am, Monday 22 March 2010.

Introduction

REIDIN.com Sales Price Indices (SPID) are designed to be a reliable and consistent benchmark of residential property prices in Dubai. The purpose is to measure the average change in house prices in certain districts and communities in Dubai.

SPID are powered by raw transaction data made available exclusively through the REIDIN.com Product: DUBAIFocus (Dubai real estate transaction database back to 1973 powered by an exclusive partnership with the Dubai Land Department) as well as property listings.

Index Summary:

    A monthly decreased in Sales Price Index Dubai-All Residential (SPID – All Residential) of 3.41% between January 2010 and February 2010.

    A year on year increased of 0.50% between February 2009 and February 2010 in the SPID-All Residential.

    Apartment prices decreased by 2.39% in February 2010 compared to January 2010.

    Villa prices decreased by 4.01% in February 2010 compared to January 2010.

    Sales prices were up in the categories of "50SQM and Less", "51SQM and 100SQM"; and down in the categories of "101SQM and 150SQM",  "151SQM and More"

Detailed Analysis

The REIDIN.com Sales Price Indices uses a moving average based median price method for index calculation – an approach that is widely used for indexing housing prices – which implies median of sales prices of properties in corresponding region is used for the indexes. Index series are set at 100 starting at the beginning of data set and are calculated by using a moving average algorithm.

T    Table 1.1 SALES PRICE INDEX DUBAI

     Source: REIDIN.com

The REIDIN.com SPID – All Residential dropped by 19 points in Q4 2009 to a level of 177.26 basis points, a 9.68% decrease from Q1 2009. The apartment index declined by 10.13% and the villa index declined by 6.72% between Q1 2009 and Q4 2009. The below graph shows residential price appreciation in February 2010.

     Chart 1.1 Residential Price Appreciation: February 2010

 Source: REIDIN.com

The overall residential sales prices were down by a nominal 3.41%; apartment sales prices were down 2.39% and villa sales prices were down 4.01% during February 2010.

     Table 1.2 SPID - Apartment (Nominal, January 2006 = 100)

Source: REIDIN.com

Prices in the category of "50m² and less" were above by a nominal 2.16% y/y in February 2010. On a month-on-month basis, prices increased by a nominal 1.64% in February 2010.

In the segment for 51m²-100m², the average nominal price increased 5.57% y/y in February 2010. On a month-on-month basis, prices increased by a nominal 0.68% in February 2010.

In the segment for 101m²-150m², the average nominal price decreased 3.84% y/y in February 2010. The average nominal price in the segment for 101m²-150m² decreased by 0.89% in the second month of 2010.

Prices in the category of "151m² and more" were down by a nominal 6.97% y/y in February 2010. On a month-on-month basis, prices decreased by a nominal 0.92% in February 2010.

    Chart 1.2 Residential Price Appreciation: By Apartment Size February 2010

   Source: REIDIN.com

     Chart 1.3 Sales Price Index Dubai (January 2003 = 100)

   Source: REIDIN.com

In In February 2010, the REIDIN.com Residential Sales Price Index was a mere 80.85 points (80.85%) above its base value of 100 points in January 2003. Whereas, the REIDIN.com Apartment Sales Price Index was 61.64  points (61.64%) above and the REIDIN.com Villa Sales Price Index was 196.23 (196.23%) above their base value of 100 points in January 2003.

   Chart 1.4 SPID – All Residential Vs. Oil Index Vs. Gold Index

    Source: REIDIN.com

     The above lines show how the REIDIN.com SPID – All Residential , oil and gold indices change between the period January 2003 and February 2010. In February 2010, the REIDIN.com DRPPI was 80,85% above its base value of 100 points in January 2003. Whereas, the oil index was 140.60% above and the gold index was 206,42% above their base value of 100 points in January 2003.

      For more information, please login to INDEXFocus.

INDEXFocus – A REIDIN.com Product

INDEXFocus is an online information service for real estate professionals to monitor and analyze residential house price data, with analytical tools to perform multiple market comparisons.
Available for Turkey (7 cities and composite index) and UAE (Dubai for the moment, Abu Dhabi is coming soon) INDEXFocus is an essential resource for professionals tracking real estate markets.

     Other REIDIN.com Products

•    REBIS:  Our flagship product covers 48 emerging countries – News, Research, Analysis, Projects, Malls, Macro Data, Legal, Companies, Market Data
•    DUBAIFocus: A very special and comprehensive intelligence service reporting on all Real Estate Transactions in Dubai registered by DLD since 1973 till today. Powered by Google Maps, analytical tools, in depth data mining functions…
•    INDEXFocus: is an online information service for real estate professionals to monitor and analyze residential house price data, with analytical tools to perform multiple market comparisons.
•    RETAILFocus: A product delivering an ever-growing database of malls, shopping centers, tenants, projects and retail real estate deals along with retail real estate news and research reports.