Review 2016 - Outlook 2017 Dubai

Q4 2015 Q2 2016

VPI 98

SALE

+3.8%

-4.6%

-2.3%

-0.4%

AED 88680%OCC

RENT

ADR

VPI 98

SALE

+0.1%

-1.1%

+2.8%

-4.8%

AED 46971%OCC

RENT

ADR

Q4 2016

VPI 98*

SALE*

-1.7%

-0.3%

-0.0%

-5.0%

AED 65085%OCC*

*estimated

RENT*

ADR*

2.68 million international guests registered during first two months of 2016, up 3.5% YoY

Fifteen new hotels announced adding 4,086 keys

Launch of ICD Brookfield Place

The Butterfly DMC Completed

TOURISM

776 hotel and serviced apartment keys were added

11 new hotels announced to add 3,028 keys by 2019

W Dubai at Habtoor City and Rove Hotel Downtown Dubai opened

TOURISMDubai Opera opened in Downtown Dubai

IMG Worlds of Adventure theme park opened along MBZ road

TOURISM

LEGOLAND Dubai, Bollywood and Motion Gatetheme parks opened

Dubai Frame 85% completed

Union Museum opened

11km Boardwalk at Palm Jumeirah opened

TOURISM

New attractions:

Dubai Frame, Madame Tussauds, Dubai Safari Village, Dubai Crocodile Park

TOURISM

Italian themed Dubai Outlet Village opened

My City Center Al Barsha opened

Mall of the World project relocated to MBZ road

RETAILDLD drafts law to regulate the rental of retail, commercial and industrial asset classes

LEGAL

85% Blue Waters Island bridges completed

830M Dubai Metro passengers in 7 years

Dubai Mero Route 2020 to start operating May 20, 2020

INFRASTRUCTURE

Fire-damaged Address Downtown penthouse sold for 25M

6-bed Emirates Hills home offered for 20M

SALES

1,004 key The Westin Dubai Al Habtoor City soft opening

Eid Al Fitr boosted occupancy

HOTEL

Dubai GDP grew 4.1%

267B total value of sales from 63,719 real estate transac-tions

23.4B total value of off-plan apartment and villa sales

1.5M daily public transport passengers

Tourists topped 14.2M

54.7B total value of real estate transactions

26B total value of ready property sales

3,646 cash and 2,540 mortgage transactions for ready properties

REVIEW 2016SALES

Damac’s Aykon City

Dubai Properties’ Bella Casa - Serena

Azizi’s Royal Bay Palm Jumeirah

Emaar’s Harbour Views and Sidra Villas

LAUNCHES

TRANSACTIONS

OFFICE Plan to buy new metro trains

DXB Concourse D opens

Plan for new highway to connect Dubai with Abu Dhabi and Northern Emirates

INFRASTRUCTURE

16 lane Dubai Canal flyover opened

Wafi interchange opened

Multi-tier four-lane flyover in Al Wasl opened

The Cityscape exhibition saw major projects announced such as Emaar South located in Dubai South, Emaar’s Creek Harbour residences, Dubai Holding’s Jumeirah Central, and Palm 360 by Nakheel

Affordable off-plan projects, Sunbeam and The Pulse launched in Dubai South

INFRASTRUCTURE

RESIDENTIAL495,000 units

OFFICE8,500,000 sq m GLA

HOTEL101,000 keys

UK Brexit vote to leave EU resulted in fall of British Pound and Euro against US Dollar

Concerns of lower real estate investments

Fears of reduced retail and tourist spending by UK and European citizens

ECONOMY

Investors not registering their units with DLD face fines

LEGAL

MARKET SENTIMENT

7.8% of projects delayed by 2-3 years, 17% delayed by 18 months to 2 years

2.5k units launched from nine off-plan projects

60 units opened in Ibn Battuta Mall phase one extension

Nakheel Deira Islands Mall to become largest in 2020

RESIDENTIAL

DFM announced new HQ in Business Bay

World’s first 3D printed office opened near Emirates Towers

OFFICE

57B total sales from 26,122 investment transactions by 149 nationalities during H1 2016

TRANSACTIONS

RETAIL

DLD expected to complete rental star rating system by end-2017 for all buildings completed before 2010

Completion of design phase and majority of infrastructure, main construction to begin

RESIDENTIAL

Noticeable quarterly increase in sales of apartments priced between 2M and 3M, and villas priced between 5M and 6M

TRANSACTIONS

Dubai Customs trade figures for H1 2016 indicated a 17% increase in volume

ECONOMY

Real GDP growth in the UAE is forecast to soften from an estimated 3.8% in 2015 to around 2.1% in 2016

ECONOMY

Cost of education up by 6%

To look out for:impact of USA federal, interest rate rise, currrency fluctuations and OPEC agrrement on oil prices

ECONOMY

Dubai Water Canal officially opened

62km Sheikh Mohammed bin Rashid Al Maktoum Road opened between Dubai and Abu Dhabi

New interchange easing traffic between MBZ road and Al Yalayis Rd

Al Maktoum International (DWC) sees 602,228 passengers in 9 months

INFRASTRUCTURE

12-lane Shindagha bridge connecting the historic districts of Al Shindagha and Al Ras to begin construction

INFRASTRUCTURE

Ibn Battuta mall added 90 retail and dining outlets within the Dubai Metro bridge

Planned First Avenue mall in Motor City to include Carrefour hypermarket as key anchor

RETAILW Hotel Habtoor City opened

The Palazzo Versace Hotel in Dubai opened

DTCM approved 1,805 holiday homes

HOSPITALITY

Park Inn Radisson and mall complex to open in Motor City

RETAIL

New hotels due in ‘17:Holiday Inn Festival City, Waldorf Astoria DIFC, Viceroy Dubai, Bulgari Resort & Residences, Venu Bluewaters Island

HOSPITALITY

New law allowing mortgage of granted land

DLD circular: All property adverts must be signed off by RERA

RERA updated rent index

LEGAL

Mixed market sentiment, while some investors call a recovery in mid-affordable locations, others feel it is only due by end 2017

MARKET SENTIMENT

UAE GDP expected to accelerate to 3.4%

After the trough of ‘16, some residential prices are expected to witness a soft recovery towards peak ’14. Rents expected to stay flat, resulting in slightly compressed yields

Sub-prime office space to continue rental reductions, while prices to remain flat

Increased competition from short-term holiday homes affecting serviced apartment sector

Better hotel performance driven by additional tourists seeking newly opened attractions

OUTLOOK

REVIEW 2016

OUTLOOK 2017

2017

Q1 2016

VPI 98

SALE

-2.5%

-3.1%

-1.4%

+0.6%

AED 60985%OCC

RENT

ADR

Q3 2016

VPI 98

SALE

+5.2%

+0.3%

-7.1%

-4.9%

AED 40172%OCC

RENT

ADR