About Cavendish Maxwell is a highly respected independent firm of chartered surveyors and property consultants, focusing on property services throughout the Middle East and Africa. Established in 2008, Cavendish Maxwell is now one of the most influential property consultancies in the region. As a fully qualified member firm of the Royal Institution of Chartered Surveyors (RICS), and with extensive knowledge of the region, Cavendish Maxwell has the necessary experience, expertise and insight to deliver property advice of the highest standard. Our reports are used for loan security, audit, insurance reinstatement, dispute resolution, risk management, debt recovery, performance analysis, project financing, development strategy and government initiative implementation. We provide a comprehensive range of property services across all our departments, each of which is headed by highly skilled, experienced and fully qualified RICS chartered surveyors. Our various teams provide valuation, agency, advisory, management, capital investment, research and building consultancy services across all property types and sectors. Our quarterly market reports provide updates on price movement, rent and yield statistics, residential transactions, and upcoming supply of residential properties through Property Monitor, the real estate intelligence platform, powered by Cavendish Maxwell. The reports also incorporate the Property Monitor Residential Survey, conducted among partner agents operating within the UAE. The survey provides an overview of how new enquiries, leasing activity and transactions, among other metrics, changed compared to the previous quarter.
Foreword Real estate market conditions remained challenging in Q2 2019, with prices continuing to decline, albeit at a slower pace in some communities. Supply remains the primary driver for price declines, and developers continue to offer attractive payment options with the aim of turning tenants into owner-occupiers. Further rental declines made it favourable for tenants to upgrade to larger units and more premium locations. Governments continue to push forward with their reforms to stimulate the economy, with Abu Dhabi being the most recent emirate to introduce new freehold land and property ownership rules for expatriates. Average sales prices and rents softened across most communities in Dubai in Q2 2019. Furthermore, the price gap between apartments and villas/townhouses narrowed markedly. Handovers for the rest of 2019 will likely average between 10,000 and 13,000 units, following materialisation rates of previous years. Office tenants continued to prefer ‘plug and play’ fully-fitted options that provide higher agility and flexibility, as capital expenditure flows reduce. In the hospitality sector, occupancy levels declined along with a fall in Average Daily Rates (ADRs), both of which led to a reduction in revenue per available room (RevPAR). Well-located community retail facilities with established catchments continued to showcase stable performance. In addition to Dubai, Cavendish Maxwell’s second quarterly report for 2019 gives a holistic view of the UAE real estate market overall, with an overview of the residential, office, retail, hospitality and industrial sectors in Abu Dhabi and the Northern Emirates.
Contents 4
Residential Market Overview
30
Commercial Market Overview
34
Hospitality Market Overview
36
Industrial Market Overview
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Dubai
House Price Timeline In Q2 2019, average villa/townhouse prices remained stable at AED 1.8 million. However, the average apartment price 2019 declined 5% to AED 1.3 million from AED 1.4 million in Q1 2019.
SALES PRICE (AED) JANUARY 2008-JUNE 2019
4.0M
3.5M
AED
3.0M
UAE REAL ESTATE BOOM
LEHMAN BROTHERS COLLAPSE
EARLY SIGNS OF TROUBLE
NAKHEEL AND DWC ANNOUNCE PLANS FOR DEBT RESTRUCTURING
OIL PRICES PEAK TO $145/BARREL
OIL PRICES COLLAPSE TO $32/BARREL
BOND ISSUANCE BY THE UAE CENTRAL BANK
ABU DHABI’S $10 BILLION LOAN TO DUBAI
REBOUND GROWTH FOR THE GENERAL MARKET - OIL PRICES ABOVE $100/BARREL
2.5M
2.0M
1.5M
Apartments
Villas / Townhouses
Note: The Dubai House Price Timeline from Property Monitor tracks residential property transactions from Dubai Land Department (off-plan and secondary market) to derive monthly and quarterly average transacted prices for apartments and villas/townhouses.
4
Q3-2013
Q2-2013
Q1-2013
Q4-2012
Q3-2012
Q2-2012
Q1-2012
Q4-2011
Q3-2011
Q2-2011
Q1-2011
Q4-2010
Q3-2010
Q2-2010
Q1-2010
Q4-2009
Q3-2009
Q2-2009
Q1-2009
Q4-2008
Q3-2008
Q2-2008
0.5M
Q1-2008
1.0M
UA E P R O P E RT Y MA R K E T RE PORT
R ES ID ENTIAL
Q2 2 0 1 9
Average sales prices and rents softened across most communities in Dubai in Q2 2019. However, over the 12-month period from Q2 2018, the average rate of price decline slowed. The price gap between apartments and villas/townhouses narrowed markedly. Average sales prices declined more than rents in Q2 2019, as was the case in the previous quarter. The average trading price for villas/townhouses in Dubai declined from AED 2.4 million at the end of Q2 2018 to AED 1.82 million in Q2 2019, representing a drop of 24% in average prices. Apartment prices also moved towards the lower end of the range, averaging at AED 1.3 million in Q2 2019 from AED 1.4 million in Q1 2019. Developers are aiming to attract investors through competitive value offerings and marketing campaigns. For instance, many developers are offering payment plans where a significant percentage of the purchase price is paid only upon completion and, in some cases, post-completion.
OIL PRICES COLLAPSE TO $47/BARREL
Q2-2019
Q1-2019
Q4-2018
Q3-2018
Q2-2018
Q1-2018
Q4-2017
Q3-2017
Q2-2017
Q4-2016
Q3-2016
Q2-2016
Q1-2017
AFFORDABLE HOUSING ARRIVES
BREXIT VOTE
Q1-2016
Q2-2015
Q1-2015
Q4-2014
Q4-2015
OIL PRICE DEREGULATION
RUSSIAN CURRENCY CRISIS
Q3-2014
Q1-2014
Q4-2013
Q2-2014
MARKET PEAK
CENTRAL BANK MORTAGE CAP
OPEC LIMITS CRUDE OUTPUT
Q3-2015
EXPO 2020 ANNOUNCEMENT
Source: Property Monitor
5
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Dubai
Apartment Price Performance According to the Property Monitor Index (PMI), average apartment prices declined by 15.1% over the 12-month period from Q2 2018 to Q2 2019.
The average rate of decline in certain areas increased year-on-year, with communities such as Jumeirah Lakes Towers (JLT), Dubai Sports City and Discovery Gardens registering noticeable declines of 16% and above, based on PMI data. Supply remains the primary driver for price declines and developers continue to offer attractive payment plans.
-3.9%
International City (Clusters)
-16.9% -7.3%
Discovery Gardens
-18.4% -3.7%
Jumeirah Village Circle
-13.2% -11.1%
IMPZ
-23.4% -2.9%
Uptown Motor City
-13.9% -5.1%
Dubai Silicon Oasis
-11.4%
-3.3%
Al Furjan
-13.3% -4%
Dubai Sports City
-16% -7.2%
Jumeirah Village Triangle
-24%
-6%
Jumeirah Lakes Towers
-16.6% -7.7%
The Greens
-17%
-4.8%
Business Bay
-14.1%
-4.5%
Dubai Marina
-13.3% -4.2%
The Views
-12.7% -2.6%
Jumeirah Beach Residence
-13.1% -3.7%
DIFC
-13.1%
-3.8%
Palm Jumeirah
-12.7% -5%
Downtown Burj Khalifa
-15.9%
0
-1
-2
-3
-4
-5
-6
-7
-8
-9 -10 -11 -12 -13 -14 -15 -16 -17 -18 -19 -20 -21 -22 % change
Quarterly Q1 2019 - Q2 2019
Source: Property Monitor
6
Yearly Q2 2018 - Q2 2019
-23
-24
UA E P R O P E RT Y MA R K E T RE PORT
R ES ID ENTIAL
Q2 2 0 1 9
Business Bay AED 1,259/Sq Ft
DIFC AED 1,544/Sq Ft
Downtown Burj Khalifa AED 1,996/Sq Ft
International City (Clusters) AED 495/Sq Ft
Dubai Silicon Oasis AED 709/Sq Ft
Palm Jumeirah AED 1,892/Sq Ft
Jumeirah Beach Residence AED 1,410/Sq Ft
Jumeirah Lakes Towers AED 996/Sq Ft
The Greens AED 1,089/Sq Ft
The Views
Jumeirah Village Circle
AED 1,356/Sq Ft
AED 704/Sq Ft
Dubai Marina Uptown Motor City
AED 1,407/Sq Ft
AED 724/Sq Ft
Dubai Sports City Discovery Gardens AED 658/Sq Ft
IMPZ
AED 795/Sq Ft
AED 640/Sq Ft
Al Furjan AED 754/Sq Ft
7
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Dubai
Villa/Townhouse Price Performance According to the PMI, average villa/townhouse prices declined 14.7% over the 12-month period from Q2 2018 to Q2 2019. The average rate of decline in villa/townhouse prices across key communities increased year-on-year, with communities such as Jumeirah Islands, Dubai Silicon Oasis and Arabian Ranches witnessing a decline in the range of 15.5 to 16.9%.
-3.8%
Al Furjan Villas
-13.7%
-4.8%
Cedre Villas Silicon Oasis
-15.7% -4.7%
Jumeirah Village Triangle
-11.4% -1.4%
Green Community Motor City
-10.4% -3.8%
The Springs
-12.5% -3.6%
Jumeirah Park
-12.5% -4.9%
Arabian Ranches
-16.9% -12.2%
Victory Heights
-21.4% -7.9%
The Meadows
-23.4% -4%
The Lakes
-14.2% -4.5%
Jumeirah Golf Estates
-8.3%
-4%
Jumeirah Islands
-15.8%
-4.4%
The Fronds Garden Homes Palm Jumeirah
-14.3%
0
-1
-2
-3
-4
-5
-6
-7
-8
-9 -10 -11 -12 -13 -14 -15 -16 -17 -18 -19 -20 -21 -22
% change
Quarterly Q1 2019 - Q2 2019
Source: Property Monitor
8
Yearly Q2 2018 - Q2 2019
-23
-24
%
UA E P R O P E RT Y MA R K E T RE PORT
R ES ID ENTIAL
Q2 2 0 1 9
The Fronds Garden Homes Palm Jumeirah AED 2,258/Sq Ft
Cedre Villas Silicon Oasis AED 760/Sq Ft
Jumeirah Park AED 919/Sq Ft
Jumeirah Islands AED 1,238/Sq Ft
The Meadows AED 1,013/Sq Ft
The Lakes AED 1,163/Sq Ft
The Springs AED 894/Sq Ft
Arabian Ranches AED 980/Sq Ft
Jumeirah Village Triangle
Green Community Motor City
AED 815/Sq Ft
AED 870/Sq Ft
Victory Heights AED 904/Sq Ft
Al Furjan Villas
Jumeirah Golf Estates AED 1,100/Sq Ft
AED 714/Sq Ft
9
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Dubai
Rent Performance Rental declines for apartments in Dubai averaged 12.5%, whilst villas/ townhouses registered a 12.6% fall over the 12-month period from Q2 2018 to Q2 2019.
In the communities of Motor City, The Greens, JLT and Discovery Gardens, downward pressure on apartment rents was more pronounced, with declines averaging 14.6% year-on-year. Meanwhile, villa/townhouse communities including The Springs, Victory Heights, Arabian Ranches and Al Furjan registered an average decline of 11% in rents. With new supply nearing completion, and an expected increase in handovers this year in both freehold and leasehold communities across Dubai, the upcoming quarters are expected to continue to exert downward pressure on rents. However, the rate of decline in rental prices is slowing down.
-15.9 The Greens AED 52,900 AED 60,040
Annual rent by bedroom
AED 95,550
* Data as of June 2019 APARTMENT Studio
-15.5
VILLA/TOWNHOUSE 3 BR
-10.4 Dubai Marina
1 BR
4 BR
AED 61,950 AED 85,560
2 BR
5 BR
AED 123,900
12-month % change
12-month % change
-13.3 JLT AED 47,750
The Views
AED 65,542
AED 59,220
AED 91,000
AED 78,200 AED 103,350
-6
-8.9
JBR
The Lakes
AED 63,700 AED 108,560
AED 162,500 AED 256,250
AED 117,600
AED 351,000
-8.8 The Meadows AED 163,350 AED 196,000 AED 240,350
-8.7 -8.7
Jumeirah Islands AED 240,448
The Springs
AED 326,400
-8.8 -9.5
AED 137,760 AED 144,200
Jumeirah Park AED 159,680
Discovery Gardens
AED 200,810
AED 34,760 AED 48,250
AED220,800
-5.2 Jumeirah Golf Estates
-9.4 Al Furjan Villas AED 128,865 AED 165,000
Source: Property Monitor
10
AED 222,300 AED 237,500 AED 289,200
UA E P R O P E RT Y MA R K E T RE PORT
-11.7 Downtown Burj Khalifa
R ES ID ENTIAL
Q2 2 0 1 9
AED 66,505 AED 95,325 AED 136,178
-10.8 -12.3 Business Bay AED 63,538
DIFC
-13.3
AED 65,500 AED 90,820 AED 153,900
International City (Clusters) AED 24,745
AED 78,330 AED 106,320
-16.5
-14.2 Dubai Sports City AED 40,500 AED 60,760 AED 89,900
AED 35,550 AED 52,800
-12.8
Motor City
Arabian Ranches
AED 44,800
AED 155,000
AED 61,440 AED 93,960
AED 264,000
AED 209,000
NUMBER OF RENTAL CHEQUES FOR APARTMENTS AND VILLAS/TOWNHOUSES 0.7% 8 cheques
3.9% 12 cheques
4.9% 6 cheques
-11.8 Victory Heights AED 153,700 AED 244,400
0.2% 5 cheques
38.7% 1 cheque
26.5% 4 cheques 6.5% 3 cheques
18.5% 2 cheques
Jumeirah Golf Estate
11
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Dubai
2019 Upcoming Supply According to Property Monitor, over 1,700 apartments and 1,250 villas/ townhouses were handed over in Dubai during Q2 2019. Most of the upcoming supply in 2019 is concentrated in a few communities – Akoya Oxygen, Jumeirah Village Circle, Mohammed Bin Rashid City, Town Square and Dubai South. Villas make up the majority of the upcoming supply, at approximately 60%. Actual materialisation rates in 2019 are expected to match previous years at 40 – 50%, with handovers averaging between 10,000 and 13,000 units, for the rest of 2019.
APARTMENTS
40%
VILLAS/TOWNHOUSES
60%
SUPPLY SCHEDULED TO BE COMPLETED BY END OF 2019 <1,500 1,501 - 2,500
Dubai Marina
Al Furjan
Dubai South Source: Property Monitor
12
UA E P R O P E RT Y MA R K E T RE PORT
R ES ID ENTIAL
Q2 2 0 1 9
Downtown Burj Khalifa Business Bay
International City
Dubai Silicon Oasis Mohammed Bin Rashid City
Dubailand
Jumeirah Village Circle
Dubai Sports City
TownSquare
Akoya Oxygen
13
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Dubai
Transaction Overview Off-plan transfers continued to dominate in Q2 2019, accounting for more than 52.2% of total transfers. The total number of transfers in this period was 9,092, for villas/townhouses and apartments overall. Mohammed Bin Rashid (MBR) City, Downtown Burj Khalifa and The Lagoons (Creek Harbour) were the most sought-after locations, displaying high off-plan apartment transfers in Q2 2019. Whilst off-plan transfers continue to dominate, the volume of transfers for under-construction apartments declined by 7.6% compared to Q2 2018. For villas/townhouses, the total volume of secondary transactions declined by 3.4% compared to Q2 2018. Secondary market transfers continued to outpace off-plan transactions during Q2 2019 for villas/townhouses.
14
96
66
58
129
94
85
Arabian Ranches 2
Emirates Living
Arabian Ranches
Mohammed Bin Rashid City
200
150
100
50
Number of transfers
306 290
Jumeirah Village Circle
300
200
100
0
OFF-PLAN
250 250 247 199 192 Business Bay
400
Downtown Burj Khalifa
500
Jumeirah Village Circle
800
International City
600
Number of transfers
700
Dubai Marina
431
Business Bay
900
65
64
Arabian Ranches 2
107
Mohammed Bin Rashid City
635
The Lagoons (Creek Harbour)
869
Downtown Burj Khalifa
Number of transfers
OFF-PLAN
Jumeirah Village Circle
210
Town Square
0
Villa Nova
Mohammed Bin Rashid City
0
Dubai South (Dubai World Central)
Number of transfers
Q2 2 0 1 9
Top 5 locations for apartment transfers in Q2 2019
R ES ID ENTIAL
UA E P R O P E RT Y MA R K E T RE PORT
SECONDARY MARKET
1,000
300
250
200
150
100 50 160
Top 5 locations for villa/townhouse transfers Q2 2019 SECONDARY MARKET
140
120
100
80
60
40
20
0
Source: Property Monitor
15
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Survey Results
PROPERTY MONITOR RESIDENTIAL SURVEY â&#x20AC;&#x201C; Q2 2019
PREDICTIONS
REALITY
The majority of agents surveyed predicted apartment and villa/ townhouse prices would decrease by up to 5%. For apartment and villa/townhouse rents, the majority of agents surveyed predicted that rates would decrease by up to 5%. New buyer enquiries, seller instructions and agreed sales were predicted to increase by the majority of agents surveyed.
16
Apartment and villa/townhouse prices declined by 4.8% on average in Q2 2019, with a 12-month decline of 14.9% on average.
vs
Apartment and villa/townhouse rents declined by 2.7% on average in Q2 2019, with a 12-month decline of 10.9% on average. According to data from real estate agencies, transaction levels in Q2 2019 were lower than Q1 2019.
UA E P R O P E RT Y MA R K E T RE PORT
LOOKING FORWARD â&#x20AC;&#x201C; Q3 2019 Q3 2019 PRICE OUTLOOK Decrease by more than 5%
Decrease by up to 5%
Increase by more than 5%
Increase by up to 5%
Remain the same
APARTMENTS
VILLAS/TOWNHOUSES
% of agents who predicted apartment prices would:
% of agents who predicted villa/townhouse prices would:
23.8%
23.8%
23.8%
R ES ID ENTIAL
Q2 2 0 1 9
25.4%
4.8%
4.8%
1.6%
1.6%
44.4%
46%
Q3 2019 RENT OUTLOOK Decrease by more than 5%
Decrease by up to 5%
Increase by more than 5%
Increase by up to 5%
Remain the same
APARTMENTS
VILLAS/TOWNHOUSES
% of agents who predicted apartment rents would:
% of agents who predicted villa/townhouse rents would:
20.6%
17.4% 28.6%
27%
3.2% 1.6%
1.6% 1.6% 50.8%
47.6%
Q3 2019 TRANSACTION OUTLOOK Decrease
Increase
Remain the same
NEW BUYER ENQUIRES
NEW SELLER INSTRUCTIONS
AGREED SALES
% of agents who predicted new buyer enquiries would:
% of agents who predicted new seller instructions would:
% of agents who predicted agreed sales would:
23%
30.6%
26.2%
21.5%
14%
63%
52.3%
15.4%
54%
Source: Property Monitor
17
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Abu Dhabi
Price Performance Average sales prices declined in Abu Dhabiâ&#x20AC;&#x2122;s major investment zones by 12.6% for apartments from Q2 2018 to Q2 2019. Villa/townhouse prices registered a similar average decline of 12.1% over the same period.
18
UA E P R O P E RT Y MA R K E T RE PORT
R ES ID ENTIAL
Q2 2 0 1 9
As of June 2019, prices in Al Reem Island, Al Raha Beach and Saadiyat Beach Residences declined by 13.4% on average for apartments, according to prices tracked by Property Monitor. The quarterly change from Q1 2019 to Q2 2019 was 3.9%. In the case of villas, prices also declined across all investment zones. With the introduction of the new freehold law which allows foreign nationals to own properties, the emirateâ&#x20AC;&#x2122;s real estate sector, and the economy as a whole, is expected to receive a boost. Previously, Abu Dhabi only granted a leasehold of 99 years to foreign property owners. The move is expected to bridge the gap between the Abu Dhabi and Dubai real estate markets, as Dubai already allows foreign nationals to buy property. In the first six months of 2019, Abu Dhabi registered AED 31 billion worth of property transactions, according to first-of-its-kind report shared by the Department of Urban Planning and Municipalities (DPM), with the aim of increasing the level of transparency for investors and businesses.
APARTMENT PRICE PERFORMANCE
Al Raha Beach % change
-3.6%
-11.1%
-3.3%
-11.7%
Al Reem Island
-14%
797
-3.9%
-13.2%
-16%
1,040
-4.4%
-15.2%
Al Reef Downtown
1,237
-4%
-11.9%
Al Ghadeer
1,375
-12%
-10%
-8%
-6%
AED/sq ft
Saadiyat Beach Residences
714
-4%
Yearly Q2 2018 - Q2 2019
-2%
200
0
400
600
800
Quarterly Q1 2019 - Q2 2019
1000
1200
1400
1600
Average Price Per Sq Ft
Source: Property Monitor
VILLA/TOWNHOUSE PRICE PERFORMANCE
-3.9%
-12.1%
Al Reef Villas
818
-0.4%
-11.7%
Saadiyat Beach Villas
-4%
-12.8%
-14%
628
-12%
-10%
-8%
Yearly Q2 2018 - Q2 2019
-6%
-4%
1,423
-2%
0
200
Quarterly Q1 2019 - Q2 2019
400
600
800
1000
1200
1400
AED/sq ft
% change
Al Raha Gardens
1600
Average Price Per Sq Ft
Source: Property Monitor
19
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Abu Dhabi
Rent Performance Rents in Abu Dhabi continued to fall in Q2 2019, for both apartments and villas/townhouses. The average annual decline was 11.9% for the 12-month period from Q2 2018 to Q2 2019. Villas/townhouses in Saadiyat Beach Villas and Al Raha Beach displayed a steep decline in rents, averaging 12.4% annually. Over the same period, rents for apartments in Al Reem Island also declined by 15% on average. Tenants are expected to benefit from a wider choice at lower rates, with upgrades to larger homes also possible. Sales prices are expected to soften further in H2 2019, as fresh supply enters the market. Some properties which were previously delayed are expected to be delivered in H2 2019.
APARTMENT RENT PERFORMANCE
% change
Al Raha Beach
114,000
-10.6%
Al Reef Downtown Al Reem Island
55,657 42,920 28,828
-11.4%
77,805
-10.2%
-5% -2.7%
-15%
38,880
-4.7%
Saadiyat Beach Residences
50,925
82,367 79,869
72,150
-14%
-12%
-10%
Studio
92,607
156,870
-10.4%
-16%
Rent (AED/annum)
Al Ghadeer
98,000
-8%
-6%
1 BR
-4%
-2%
-0%
0
50,000
100,000
150,000
Yearly Q2 2018 - Q2 2019
2 BR
Source: Property Monitor
% change
Al Raha Gardens
378,120 338,720 316,800
-13.2%
Saadiyat Beach -14%
-13%
3 BR
20
135.388 128,550 101,081
-11.6%
Al Reef Villas
Source: Property Monitor
198,623 166,056 133,575
-12.5%
-12%
-11%
4 BR
-10%
5 BR
0
100,000
200,000
300,000
Yearly Q2 2018 - Q2 2019
400,000
Rent (AED/annum)
VILLA/TOWNHOUSE RENT PERFORMANCE
200,000
UA E P R O P E RT Y MA R K E T RE PORT
Abu Dhabi
R ES ID ENTIAL
Q2 2 0 1 9
2019 Upcoming Supply According to Property Monitor, over 500 residential units were handed over in Abu Dhabi during Q2 2019 alone. Upcoming supply for the rest of the year is spread across Abu Dhabi’s investment zones and mainland. More than 6,400 residential units are expected to be delivered in H2 2019, of which, 3,000 apartments are to be handed over on Al Reem Island, Yas Island, Saadiyat Island and Abu Dhabi City.
Supply scheduled to be completed in H2 2019
APARTMENTS
87%
<100 100 - 500
VILLAS/TOWNHOUSES
501 - 1,000
13%
1,000+
Source: Property Monitor
Saadiyat Island
Al Raha Beach
Al Maryah Island Yas Island
Al Reem Island
Abu Dhabi City
Khalifa City
21
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Northern Emirates
Residential Market Overview The Northern Emirates of Sharjah, Ajman and Ras Al Khaimah remain affordable alternatives for buying and renting of properties in the UAE. Reputed builders such as Eagle Hills and Emaar are developing master-plan projects in these emirates.
With prices and rents in neighbouring Dubai softening, residential real estate in Sharjah and Ajman followed a similar trend. Rental values declined across all residential segments, with upscale properties witnessing corrections as well. The current market dynamics in the Northern Emirates have made it more affordable for residents to upgrade to higher quality properties and larger unit sizes.
AVERAGE RENTAL RATES Q2 2019
Rent (AED in thousands/annum)
80
60
40
40 32
30 21 20
26 24
20
18
22
17
0 Studio
1 BR
Sharjah
Ajman
Source: Cavendish Maxwell
22
Source: Propertymonitor.
Ras Al Khaimah
UA E P R O P E RT Y MA R K E T RE PORT
R ES ID ENTIAL
Q2 2 0 1 9
Similar to Dubai and Abu Dhabi, governments in the Northern Emirates are introducing larger budgets with diversification strategies to stimulate their economies and boost investment. These measures are expected to translate into employment and business growth, and as a result, increased transaction activity. In 2019, the UAE allocated AED 11 billion to improve of roads and infrastructure in the Northern Emirates. The restoration of Al Ittihad Street, the oldest arterial road linking the emirates to Dubai, is expected to improve traffic flow, attracting those seeking affordable properties.
65
57
35
50
45
45
44
34
32 25
2 BR
Fujairah
3 BR
Umm Al Quwain
23
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Sharjah
Residential Market Overview Despite proactive government initiatives and increased spending, rental rates are expected to face continued pressure for the rest of 2019.
Average apartment rents over the quarter declined by 5%, whilst villa rents on average declined by 3% over the same period. In popular locations such as Al Khan, Al Majaz and Abu Shagara, annual rents for studios start at approximately AED 16,000, and go up to AED 85,000 for three-bedroom apartments. Rents in communities in Al Heerah and Wasit start at approximately AED 85,000 fo four-bedroom villas, going up to AED 200,000 for six-bedroom villas. Upcoming residential supply includes master-planned communities such as Maryam Island, Al Mamsha, Al Zahia, Al Ajada and Sharjah Waterfront. Rising vacancy levels have led to property owners actively offering discounted rentals to retain and attract tenants. In addition, they are also willing to absorb fees and provide rent-free periods as part of the incentives offered.
AVERAGE RENTAL RATES (AED) Q2 2019
Prime Apartments Studio 20,000
1 BR
2 BR
27,000
31,000
Prime Apartments
3 BR
Studio
1 BR
2 BR
3 BR
51,000
26,000
39,000
60,000
73,000
Secondary Apartments
Secondary Apartments Studio
1 BR
2 BR
Studio
1 BR
2 BR
3 BR
16,000
21,000
28,000
18,000
21,000
28,000
37,000
Source : Property listings as of June 2019
24
Al Nahda
UA E P R O P E RT Y MA R K E T RE PORT
R ES ID ENTIAL
Q2 2 0 1 9
Al Azra
Rolla Wasit Suburb Abu Shagara Al Majaz Al Khan
Al Rahmaniya
Al Taawun Al Nahda
Al Jurainah
Hoshi
Al Suyoh
Al Tai
Prime Villas 4 BR 105,000
5 BR
6 BR
135,000
158,000
Prime Villas 4 BR 103,000
5 BR 117,000
Secondary Villas
6 BR 135,000 Secondary Villas
4 BR
5 BR
6 BR
4 BR
95,000
123,000
128,000
90,000
5 BR 114,000
6 BR 128,000
25
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Ajman
Residential Market Overview Real estate in Ajman is a feasible option for local and expat investors due to lower rent and sale prices than neighbouring Sharjah and Dubai.
The Ajman residential market is mainly dominated by villas, which are the preference for larger families. However, apartments are also available across multiple price points based on resident preferences. Annual apartment rents in Ajman range from AED 20,000 per annum for studios, to AED 50,000 for threebedroom units. Studio sizes range from 300 to 900 sq ft, one-bedroom apartment sizes range from 550 to 1,900 sq ft and two-bedroom apartment sizes range from 800 to 2,500 sq ft. With more upcoming supply expected to enter Meshairef, Emirates City and Al Butain, further downward pressure on rents is expected. Al Zohra, which is a mixed-use development planned for completion in 2023, has been delayed. Once complete, it is slated to accommodate 50,000 people.
Al Jurf
Al Bustan
Rashidiya Al Rawdha
Al Naemiya
AVERAGE RENTAL RATES (AED) Q2 2019 Secondary Apartments
Prime Apartments Studio
1 BR
2 BR
3 BR
Studio
1 BR
2 BR
3 BR
20,000
25,000
35,000
45,000
16,000
18,000
30,000
40,000
Source : Property listings as of June 2019
26
UA E P R O P E RT Y MA R K E T RE PORT
Umm Al Quwain
R ES ID ENTIAL
Q2 2 0 1 9
Residential Market Overview As of Q2 2019, apartment rental rates remained stable compared to Q1 2019, with a marginal average decline of 1%. The apartment rental rate in Umm Al Quwain ranged from AED 16,000 per annum for studios to AED 32,000 per annum for three-bedroom units.
The expansion of the Umm Al Quwain Free Trade Zone was initiated this year, with completion expected by Q1 2020. The new free zone will be spread over an area of two million sq m, with plans to develop an industrial smart city with residential, warehouses, offices and leisure facilities.
Fujairah
Residential Market Overview As of Q2 2019, rents in Fujairah declined 2% compared to Q1 2019. Rents in the emirate range from AED 18,000 per annum for studios to AED 50,000 per annum for three-bedroom units.
More than 700 apartments and 1,200 villas are currently under construction in Fujairah, and are expected to be handed over in H2 2019. Major upcoming residential projects include residential communities in Al Hayl, Eagle Hills and Fujairah Investment Towers. As of Q2 2019, a wide range of development projects are underway in the emirate as it seeks to diversify its economy. These projects include the expansion of Fujairah Airport to boost tourism, and the development of Sheikh Khalifa Hospital to attract medical tourism. The expansion into other sectors will likely increase employment, and subsequently, the demand for housing.
27
Q2 2 0 1 9
Ras Al Khaimah
Residential Market Overview
28
UA E P R O P E RT Y MA R K E T RE PORT
UA E P R O P E RT Y MA R K E T RE PORT
Annual rents in Ras Al Khaimahâ&#x20AC;&#x2122;s newer stock, including Al Hamra Village and Mina Al Arab, declined marginally by 1% on average in Q2 2019 compared to Q1 2019. Rents in older stock remained relatively stable.
R ES ID ENTIAL
Q2 2 0 1 9
As of Q2 2019, Al Hamra Village continued to be a popular choice for tenants and investors, and apartments maintained occupancy of over 75%. Average rents ranged from AED 32,000 per annum for studios to AED 70,000 per annum for three-bedroom units. On the other hand, apartment sales prices at Al Hamra Village and Mina Al Arab ranged from AED 400 to AED 700 per sq ft. Major upcoming residential projects in Mina Al Arab include Northbay Residences and Gateway Residence, which are a part of Hayat Island. Gateway Residence is expected to be delivered by Q4 2019, whilst Northbay Residences is expected to be complete by 2021. Apartment sales prices within these projects start from AED 670,000 for one-bedroom units. New developments in Ras Al Khaimah offer a unit mix that is aligned with current market demand. However, the market is price-sensitive and fluctuations in rental rates are likely to affect the absorption rates of these new developments.
Al Marjan Island Al Hamra Village Mina Al Arab
Julphar Towers Al Seer Al Uraibi
AVERAGE RENTAL RATES (AED) Q2 2019
Prime Apartments
Secondary Apartments
Studio
1 BR
2 BR
3 BR
Studio
1 BR
2 BR
3 BR
32,000
41,000
51,000
70,000
18,000
23,000
33,000
38,000
Prime Apartments Studio
1 BR
2 BR
3 BR
27,000
37,000
53,000
65,000
Source : Property listings as of June 2019
29
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Dubai
Office Market Overview In H1 2019, tenants continued to prefer â&#x20AC;&#x2DC;plug and playâ&#x20AC;&#x2122; fully-fitted options, providing higher agility and flexibility to suit a variety of business needs. Many occupiers have consolidated their portfolios by opting for purpose-built or competitively-priced spaces. Landlords are now catering to this preference by converting shell and core offices into fully-fitted and furnished units. The weakening demand for office space in the face of oversupply in the market is resulting in less office space being constructed. Landlords are offering incentives such as longer rent-free periods and flexible payment terms, and are also absorbing service charges in some areas to attract and retain tenants. Investors continue to display interest in well-located Grade A assets with credit-worthy tenants perceived as low-risk. During Q2 2019, vacancy rates in the commercial sector varied across Dubai ranging from 5% in Dubai Design District to 54% in Business Bay. Meanwhile, core buildings in Dubai International Financial Centrre (DIFC) continued to outperform the overall market, achieving an occupancy rate of approximately 90%. Upcoming supply in the central business district with the expansion of DIFC 2.0, which is expected to offer 6.4 million sq ft of office space, will likely continue to impact vacancy levels in non-core areas, and subsequently, rents.
OFFICE RENTS PERFORMANCE (AED/SQ FT) 125
-5%
150
70
-1%
Mid-quality
Affordable
95
50
-4%
-10%
-8%
-6%
-4%
65
-2%
0
20
Quarterly Q1 2019 - Q2 2019
40
60
80
Shell and Core
100
120
DUBAI OFFICE ENQUIRES BY SECTOR H1 2019
DUBAI OFFICE ENQUIRES BY SIZE (SQ FT) - H1 2019
0-1,000 15%
Financial Services 33%
7%
25%
Technologies Construction-related
10,000+
Healthcare, Beauty and Pharmaceutical 18%
Retail Logistics and Distribution
Source : Cavendish Maxwell
30
1,001 - 4,999 5,000 - 9,999
11%
Hospitality, Leisure and Entertainment
12%
160
Fitted
Professional Services
4%
6%
14%
140
The above rates are inclusive of service charge and are based on signed rental contracts.
Source: Cavendish Maxwell
6%
Rent (AED/sq ft)
% change
Prime Quality
49%
UA E P R O P E RT Y MA R K E T RE PORT
Dubai
CO M M ER C IAL
Q2 2 0 1 9
Retail Market Overview Retail sector expansion in Dubai is supported by steady tourism growth and transport infrastructure development. As of Q2 2019, despite declining rents, occupancy rates also fell. However, compared to the wider retail market, well-located community retail facilities with established catchments, continued to showcase stable performance. To retain and attract tenants, developers are becoming increasingly flexible on lease terms and offering incentives such as service charge waivers, revenue share agreements and capital expenditure contributions. Dubaiâ&#x20AC;&#x2122;s retail sector is also being impacted by the influx of e-commerce companies, which is driven by the growing adoption of smartphones, internet penetration and other digitised services. To remain relevant and attract customers to brick and mortar stores, retailers are adopting aggressive promotional campaigns and offering discounts to tenants.
RETAIL RENTAL RATES Q2 2019 (AED/SQ FT) Retail Type
Average Rental Rate
High Street/Destination Retail
210 - 650
Central Business District
200 - 400
Community Retail
60 - 220
Source: Cavendish Maxwell Rates vary by size, location, access and target tenants (for instance, Supermarket versus F&B concept). Some retail units may be offered on a rent + turnover percentage.
31
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Abu Dhabi
Office Market Overview As of Q2 2019, subdued demand, reduced business growth and corporate restructuring placed downward pressure on rents in the office space. Rents for prime and mid-quality buildings declined by 2% on average in Q2 2019. There was limited interest from the hydrocarbon sector, some of the largest office tenants in Abu Dhabi, putting further pressure on rents. A rising number of public and quasi-government organisations also responded to market conditions over the quarter by downsizing or consolidating their operations. Corporates are demanding lease flexibility both at renewal and new lease signing stages, citing the economic uncertainty within the region as the reason. Rising vacancy rates and declining rents created an opportunity for tenants to relocate from locations they may have previously been priced out of, whilst also being able to negotiate rates with landlords. Tenants are choosing to upgrade to Grade A stock from Grade B and C specifications. As a result, landlords have become more flexible by providing extended rent-free periods, parking provisions, and payments towards fit-out costs, among others. Abu Dhabi’s new freehold law introduced in Q2 2019, allowing foreign investors to buy real estate in 15 designated investment zones, is expected to improve market sentiment in the medium term.
OFFICE RENT PERFORMANCE (AED/SQ FT)
160
Rent (AED/sq ft)
% change
Prime Quality 70
Mid Quality
80
50
Affordable
75
0
20
40
60
Shell and Core
80
100
120
140
160
Fitted
Source : Cavendish Maxwell
Retail Market Overview As of Q2 2019, Abu Dhabi’s retail market remained subdued, with slowing retail spending and the rise of ecommerce posing challenges. Retail rents continued to decline, with a reported increase in vacancy levels. Many mall operators attempted to respond by offering numerous leasing incentives to attract and retain retailers. New supply in Q2 2019 included My City Centre Masdar, Majid Al Futtaim’s first shopping mall in Abu Dhabi, with 200,000 sq ft of gross leasable area across 70 stores. In addition, the refurbished Lulu Shopping Centre opened at Madinat Zayed with a built up area of 323,000 sq ft and 75 stores. To improve retail market conditions, the government launched Retail Abu Dhabi (RAD) in Q2 2019, an annual sales event in major malls such as Abu Dhabi Mall, Marina Mall, Dalma Mall, Raha Mall and Mushrif Mall, to boost footfall and stimulate demand.
32
UA E P R O P E RT Y MA R K E T RE PORT
Northern Emirates
CO M M ER C IAL
Q2 2 0 1 9
Office Market Overview
Sharjah benefits from a competitive advantage over other emirates due to its low-cost of living and doing business. However, considering Dubaiâ&#x20AC;&#x2122;s over-supply and rental climate, rents in Sharjah, and neighbouring Ajman, came under pressure. As of Q2 2019, the office sector continued to display little momentum, owing to a bearish market sentiment and regional uncertainties, which affected potential tenant upgrades and newcomers to the market. As of Q2 2019, limited demand for office space in Sharjah led to average rental declines of 3% over the quarter, and 6% over the last 12 months. Noticeable declines were witnessed in the Corniche and industrial areas compared to the same period last year. Dubai Investments announced that the mixed-use Fujairah Business Centre project is on track to be delivered by Q2 2020. In Umm Al Quwain, construction began on the expansion of the Umm Al Quwain Free Trade Zone, amid rising demand from new tenants.
SHARJAH OFFICE RENTAL RATES (AED/SQ FT)
28 42
Corniche Area (Al Khan, Al Majaz 3)
Rent (AED/sq ft)
% change
Al Taawun Road
41 53
Abu Shagara/Al Qasemiah
34 50
26
Industrial Area
35
0
10
20
Shell and Core
30
40
50
60
Fitted
Source : Cavendish Maxwell
Retail Market Overview In H1 2019, Oasis mall was completed and handed over in Sharjah, having a total area of 650,000 sq ft and over 45 retail stores. In addition, new F&B outlets opened in the Corniche area and at Al Majaz Waterfront. At the beginning of 2019, the Ajman Municipality and Planning Department launched a new mixed-use development called Ajman Square. The development includes cafes and restaurants, in addition to walking tracks and open spaces, offering plenty of recreational options to visitors. In Q2 2019, Spinneys opened its second store in the Al Jurf community, spanning over 14,000 sq ft. The Mall of UAQ was completed and handed over in Al Maqtaa, Umm Al Quwain in Q2 2019. The 100,000 sq ft Lulu Hypermarket is an anchor tenant in the mall.
33
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Dubai
Hospitality Market Overview According to data released by STR Global, Dubai hotel room occupancy levels declined from 80.8% in the January to May 2018 period to 76.5% in the same period in 2019, a year-on-year decline of 5.3%. During the same period, Average Daily Rates (ADRs) fell 12% from AED 722 to AED 634. Because of declines in both occupancy and ADR, Dubai has seen a 16.8% reduction in revenue per available room (RevPAR). STR Global data also showed that in H1 2019 there were 3,841 rooms added to the total inventory. 12,472 rooms are expected to be delivered over the remainder of 2019, with approximately 49% of the additional inventory belonging to the upper-upscale sector. In H2 2019, with the anticipated addition of new supply amid a period of slowing demand, ADRs are expected to come under increased pressure, along with further reductions in occupancy levels.
OCCUPANCY AND ADR 82%
600
81%
580
700
80%
680
79%
660
78%
640
77%
620 600
76.5% 722
634
2018
2019
ADR
82% 81%
80.8%
560
80%
540
79%
520
78%
500
76%
480
75%
460
77%
76.5% 583
485
2018
2019
Rev PAR
OCC %
Occupancy
80.8%
Rate (AED)
Rate (AED)
720
Occupancy
740
OCCUPANCY AND RevPAR (AED)
76% 75%
OCC %
Data as of YTD May
Source: STR Global
Abu Dhabi
Hospitality Market Overview According to data from STR Global, hotel room occupancy rates in Abu Dhabi City declined from 79.4% in the January to May 2018 period to 78.5% in the same period in 2019, a marginal drop of 1.1%. Hotel RevPAR within the city increased during the period, from AED 233 to AED 253, representing an increase of 8.5%. The increase in RevPAR is mainly attributed to events such as the Special Olympics held in March 2019. As of H1 2019, the Department of Culture and Tourism (DCT) has reduced tourism fees from 6% to 3.5%, municipal fees from 4% to 2% and municipality hotel room fees per night from AED 15 to AED 10. This reduction is expected to increase the emirateâ&#x20AC;&#x2122;s competitiveness and visitor numbers. In terms of upcoming supply, 560 hotel rooms are due to be added to hospitality inventory by the end of 2019.
80%
300
79.4% 78.5%
280 260
322
293
2018
2019
Data as of YTD May
OCC %
79% 78% 77%
260 250 240
81%
78.5%
230 220
80%
79.4%
233
253
2018
2019
Rev PAR
79% 78%
Occupancy
81%
320
Rate (AED)
340
ADR
34
OCCUPANCY RevPAR (AED)
Occupancy
Rate (AED)
OCCUPANCY % AND ADR
77%
OCC % Source: STR Global
UA E P R O P E RT Y MA R K E T RE PORT
Northern Emirates
HOS P ITAL ITY
Q2 2 0 1 9
Hospitality Market Overview The addition of new tourist attractions and hotel projects in the Northern Emirates is expected to aid growth in the hospitality sector. According to the Sharjah Investment and Development Authority, over 4,000 hotel rooms are expected to be added to the emirateâ&#x20AC;&#x2122;s hospitality sector between 2014 and 2020. In Q2 2019, the Ajman Municipality and Planning Department announced an AED 25 million heritage district that is set to be a key tourist destination in the emirate. According to the Fujairah Tourism Authority, the reconstruction of Habhab Fort and the redevelopment of Fujairah Museum are expected to be complete by the end of 2019. STR Global data showed that in Ras Al Khaimah, hotel room occupancy rates declined from 75.5% in January to May 2018 to 70.4% in the same period in 2019, a year-on-year drop of 6.8%. Hotel RevPAR in the emirate also decreased during the same period, from AED 482 to AED 402, representing a decline of 17%. Fujairah occupancy rates also declined from 73.2% in January to May 2018 to 66.4% in the same period in 2019, a year-on-year drop of over 6%. â&#x20AC;&#x192;
OCCUPANCY AND RevPAR (AED) 80%
550
80%
650
78%
500
78%
600
76%
450
74%
400
550
73.2%
72%
500 70.4%
450
70% 68%
400 66.4%
350 300
639
250
405
2018
Ras Al-Khaimah ADR Ras Al-Khaimah OCC
Data as of YTD May
571
357
2019
Fujairah+ OCC
74%
73.2%
72%
350 70.4%
300
70% 68%
250
66%
200
64%
150
62%
100
Fujairah+ ADR
76%
75.5%
66.4%
482
296
2018 Ras Al-Khaimah RevPAR Ras Al-Khaimah OCC
402
237
Occupancy
75.5%
Rate (AED)
700
Occupancy
Rate (AED)
OCCUPANCY AND ADR
66% 64% 62%
2019 Fujairah+ RevPAR Fujairah+ OCC
Source: STR Global
35
Q2 2 0 1 9
UA E P R O P E RT Y MA R K E T RE PORT
Dubai
Industrial Market Overview Industrial and logistics property market conditions remained relatively consistent, with increased flexibility in pricing from vendors and landlords acting as a further catalyst for higher transaction volumes. With a widening gap in the local two-tier market due to occupiers seeking better value, there was a continued flight-to-quality, with pricing for modern, high-quality assets remaining stable, both for rentals and sales. Older, dilapidated properties that no longer comply with current legislation and requirements (such as those of the Dubai Civil Defense) continued to experience negative pressure. This segment of the market is expected to experience further declines in H2 2019. Demand for general trading spaces accounted for 44% to 52% of both the freezone and onshore markets, followed by manufacturing, logistics and distribution centres. The market is experiencing lengthier transaction times as a result of more extensive occupier due diligence and analysis. The entire procedure, from initial discussions and identifying specific occupier requirements, to property selection and concluding a transaction, can now take between nine and 12 months, or longer in certain cases. In H2 2019, landlords will be expected to provide further incentives, such as rent-free periods, multiple rental cheques, and capital expendenture contributions, or offer more innovative solutions to provide potential occupiers with better value and service. In return, landlords will expect tenants to sign longer-term leases, in an effort to prevent void periods and stabilise rental incomes..
AVERAGE WAREHOUSE RENTS IN DUBAI
37
Rent (AED/sq ft)
40 30
34
28
25
28
27
NIP Techno Park
Dubai Industrial Park
20 10 0 JAFZA
Al Quoz
Dubai Investment Park
Dubai South DWC
Source: Cavendish Maxwell
Inclusive of sub-lease fees
FREE ZONE DEMAND BY SECTOR - H1 2019
ON SHORE DEMAND BY SECTOR - H1 2019
7%
0.6% 1.9%
6%
5% 0.6% 0.6%
3.8%
2% 8.2%
5% 5%
44%
3.8% 52.2%
1% 5.7%
5.7% 14% 12% 17%
Source: Cavendish Maxwell
36
General Trading Manufacturing Logistics and Distribution F&B Engineering Services Commodities E-commerce Learning and Development Leisure and Healthcare Oil and Gas Others
UA E P R O P E RT Y MA R K E T RE PORT
Abu Dhabi
IND U STR IAL
Q2 2 0 1 9
Industrial Market Overview The Abu Dhabi government continues to promote development in the industrial sector to improve economic growth, whilst reducing dependence on the oil and gas sector. Most of the existing industrial stock in the older industrial areas is of inferior quality, consisting of smaller multitenanted units. Not only do these properties have connectivity issues, but also lack the dual license structure which helps to attract companies by lowering the cost of doing business. The emirateâ&#x20AC;&#x2122;s industrial sector has recorded lower rents over the last 12 months. Areas such as Mussafah and ICAD 1 registered declines of more than 10% in Q2 2019, compared to the same period in 2018, with rents for pre-built units averaging AED 32 per sq ft. In locations like KIZAD, majority of the stock is purpose-built. The limited evidence for pre-built light industrial units indicates rates of AED 25 per sq ft to AED 33 per sq ft on average.
Northern Emirates Industrial Market Overview
According to the Sharjah Economic Development Department, industrial production in Sharjah reached AED 41 billion in 2018. Industrial lease rates and demand remained relatively stable in Q2 2019. Lease rates for warehouses ranged from AED 15 to AED 32 per sq ft per annum in Sharjah and Ajman, based on location, specifications and availability. In Sharjah Airport International Free Zone (SAIFZ), warehouse rents ranged from AED 32 to AED 39 per sq ft per annum. In Ras Al Khaimah, RAK Ports launched two new bulk cargo berths at Saqr Port, which enable the bulk cargo exports from the emirate to faraway markets, in an effort to boost the logistics sector. Major clients such as Stevin Rock, which operates the largest limestone quarry in the world, can now export to markets in the Far East and Australia directly from the port. The expansion of the Umm Al Quwain Free Trade Zone (FTZ) was also initiated this year, with completion expected in Q1 2020. The expansion project will include setting up a new sustainable industrial smart city, featuring logistics, outsourcing and alternative power-related industries, with a focus on small and medium enterprises. Spread over an area of two million sq m, the FTZ is expanding its warehouse and office space to meet demand from new customers.
Source : Cavendish Maxwell
37
Methodology Residential sales prices and rents are derived from Property Monitor (www.propertymonitor.ae), the region’s leading real estate intelligence platform and the only data source powered by RICS-accredited professionals; bringing unprecedented transparency and accuracy to local property markets. Through Property Monitor, market stakeholders can directly access real-time, transparent and accurate intelligence, unmatched anywhere else in the region. The platform empowers investors, property specialists and banking professionals with authoritative data, analytics and insights that closely correlate with market movements, empowering confident and informed property-related decisions. The average residential sales price per square foot is based on the Property Monitor Index which incorporates signed contracts, registered transactions, valuations and listings verified by Cavendish Maxwell’s market-leading valuation department. The Property Monitor Residential Survey is a quarterly study of agent opinions designed to identify residential market sentiment. This research highlights how new enquiries, leasing activity and transactions, among other metrics, changed from quarter to quarter with agent predictions compared to actual real market performance. Supply projections for residential projects are based on the Property Monitor Supply Tracker, which tracks supply in real time, including regular tracking of construction projects, new launches and delays. This is achieved through site inspections as well as regular feedback from developers, contractors, Cavendish Maxwell’s building consultancy team and related government entities.
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Disclaimer: The information and analysis contained in this report is based on information from a variety of sources generally regarded to be reliable, and assumptions which are considered reasonable, and which was current at the time of undertaking market research, but no representation is made as to their accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue the indices at any time, for regulatory or other reasons. The report and analysis do not purport to represent a formal valuation of any property interest and must not be construed as such. Such analyses, including forward-looking statements are opinions and estimates only, and are based on a wide range of variables which may not be capable of being determined with accuracy. Variation in any one of these indicators can have a material impact on the analysis and we draw your attention to this. Cavendish Maxwell and Property Monitor do not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this report.