Real Estate Market 2nd Quarter | 2019 Review

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Real Estate Market
 2nd Quarter | 2019 Review
Real                                                             VPI Residential           VPI Residential        VPI Office

  Estate                                                           Capital Values            Rental Values        Capital Values

  Performance                                                                  -11.5%
                                                                               Q2 Y-o-Y
                                                                                                       -10.6%
                                                                                                       Q2 Y-o-Y
                                                                                                                         -16.1%
                                                                                                                         Q2 Y-o-Y

          VPI
          ValuStrat Price Index
                                    Market Intelligence.
                                    Simplified.

                                                                                              Source: ValuStrat

                                                            Key Indicators
                                                           Source: REIDIN, DTCM, ValuStrat

Residential Off-Plan              Residential Off-Plan         Residential Ready             Residential Ready         Residential
 Sales Ticket Size                  Sales Volume               Sales Ticket Size               Sales Volume              Rents

     1.48m                               4,662                      1.81m                         2,687                 91,759
         AED                            Transactions                     AED                      Transactions            AED p.a.

            -7.1%                                 5.5%                      10.2%                        0.4%                  -3.3%
            Q-o-Q                                 Q-o-Q                     Q-o-Q                        Q-o-Q                 Q-o-Q

  Hotel Average                         Hotel                      Office Sales                 Office Sales              Office
   Daily Rate                         Occupancy                    Ticket Size                    Volume                  Rents

       469                                77%                       0.92m                           374                   945
   AED Jan-May 2019                     Jan-May 2019                     AED                      Transactions          AED/sq m p.a.

            -10.7%                                -5.0%                     -12.6%                       -3.4%                 -2.3%
            Y-o-Y                                 Y-o-Y                     Q-o-Q                        Q-o-Q                 Q-o-Q

       Increase          Stable         Decline

  1 | Dubai Real Estate Market 2nd Quarter 2019 Review
VPI
      ValuStrat Price Index

Residential
  The ValuStrat Price Index (VPI), which is a
  valuation-based price index for Dubai’s          VPI - Dubai Residential Capital Values
                                                   16 Apartment and 10 Villa Locations
  residential values, displayed an overall 11.5%
                                                   [Base: Jan 2014=100]
  annual fall in capital values, with quarterly
  declines slowing to 2.9%. This downward          110
  trend resulted in 29.3% citywide capital value            98.0 97.9 97.5 97.5 97.0
                                                   100                               96.7 96.2 95.4
  loss since the peaks of mid-2014. All                                                                         92.7
                                                                                                                       89.5
  established freehold locations monitored by       90                                                                        87.0
                                                                                                                                     84.0
  the VPI witnessed price drops since the last                                                                                              81.5 79.2
                                                    80
  quarter, ranging from 1.2% to 4.2%. On an
  annual basis, 3 out of 26 locations measured      70
  saw single-digit declines, villas in Palm

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  Jumeirah and Al Furjan, as well as                                 2016                    2017                       2018                 2019
  apartments in Dubai Sports City. Capital
  values dropped more than 15% annually for        Source: ValuStrat

  apartments in Palm Jumeirah, Discovery
  Gardens, and The Greens.
                                                   VPI - Dubai Residential Rental Values
                                                   16 Apartment and 10 Villa Locations
  The Dubai VPI also analyses residential          [Base: Q1 2014=100]
  rentals. The rental VPI is a 100 index with a
                                                   110
  base set for Q1 2014, it monitors 16 apartment
                                                            98.8 97.6 98.7
  and 10 villa locations within Dubai’s freehold   100
                                                                           97.4

  market and compares similar units within                                            90.1 90.4
                                                                                                  87.7
  those locations on a quarterly basis. The Q2      90                                                   85.6
                                                                                                                84.0 82.7
  2019 residential rental VPI in Dubai stood at                                                                               78.8 78.0
                                                    80                                                                                      76.5
  73.9 points, declining 26.1% since 2014,                                                                                                         73.9

  dropping 3.4% quarterly and 10.7% annually.       70
  Dubai’s net yields averaged 5.7%, with
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  apartments at 5.9% and villas at 4.7%. The                         2016                    2017                       2018                 2019
  average residential occupancy rate stood at
                                                   Source: ValuStrat
  84%.

Office                                             VPI - Dubai Office Capital Values
                                                   5 Office Locations
  The second quarter ValuStrat Price Index for     [Base: Q1 2015=100]
  Dubai’s office capital values declined to 69.3   100
  points, suggesting that average capital values            91.8 91.4
                                                                      88.7 90.0
                                                                                92.0 91.5 91.3
                                                                                               89.3
  are 30.7% lower than the same period during       90                                                          86.5
                                                                                                                       82.7
                                                                                                                              80.7
  the base year 2015, 16.1% lower than the same     80                                                                               77.7
                                                                                                                                            74.0
  period last year and 6.3% below the previous
                                                                                                                                                   69.3
  quarter. Office space in Business Bay             70
  witnessed the highest annual drop of 18.2%
                                                    60
  and 7.7% QoQ, Jumeirah Lake Towers was
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  second in line with losses of 17% year on year
                                                                     2016                    2017                       2018                 2019
  and 7.2% QoQ. Downtown Dubai and Dubai
  International Financial Centre (DIFC) saw the    Source: ValuStrat
  least annual declines of 10.5% and 5.3%,
  respectively. DIFC was the only location with                    For more details, please visit www.valustrat.com/vpi
  stable capital values since last quarter.
                                                                                                                  www.valustrat.com | 2
Macro-Economic Snapshot
      • Dubai Investment Development Agency                              Dubai Population
        recorded 41% YoY increase in foreign direct
         investments amounting to AED 38.5 billion in
         2018                                                            3,279,000
      • Dubai Economy forecasted 2019 GDP to grow                                  2019-Q2
        2.1% with real estate, transport, logistics and                                                    3,186,000
        tourism sectors as major growth drivers                                                            2018
      • During January to April 2019, the Business
        Registration and Licensing sector at the                                                                    2,976,000
        Department of Economic Development (DED)                                                                    2017
        Dubai issued 9,514 new licenses, up 38.3% YoY
      • Non-oil foreign trade grew 7% YoY to AED 339                                                                   2,699,000
        billion during the first quarter of this year, as                                                              2016
        per latest data from Dubai Customs
      • Foreign trade indicators rose 30% YoY in                                                                       2,447,000
        exports, 7% YoY growth in re -exports and                                                                      2015
        imports up 4% YoY
      • Moody’s Investor Service estimated Dubai
                                                                                                                  2,327,000
        received largest share of Value Added Tax
                                                                                                                  2014
        (VAT) receipts in 2018 at 42% of total UAE VAT
        revenues
      • Dubai International Airport (DXB) recorded
         2.2% less traffic in Q1 2019 compared to the
         same period last year, at 22.2 million
         passengers
      • Free zone trade totalled AED 146 billion, up
        20% YoY. Direct trade at AED 189 billion
                                                                         Source: Dubai Statistics Centre
        accounted for much of the total trade but fell
        0.5% YoY

                                                                                                • Total population stood at
                                                                                                  3.28 million with average
                                                                                                  five-year growth rate of 7.6%
      Consumer Price Index vs. Housing Index                                                    • Sheikh Mohammed bin
      January 2016 – YTD                                                                          Rashid Al Maktoum unveiled
                                                                                                  the “gold card” system, a
      125                                                                                         new scheme which could
      120                                                                                         grant permanent residency
                                                                                                  to certain investors,
      115                                                                                         entrepreneurs and
      110                                                                                         professionals
                                                                                                • As of April 2019, annual
      105
                                                                                                  inflation rate dropped 2.9%
      100                                                                                         and witnessed less than 1%
                                                                                                  MoM uptick
       95
                                                                                                • Housing and Other Utilities
            Jan
            Feb
            Mar
            Apr
            May
            Jun
             Jul
            Aug
            Sep
            Oct
            Nov
            Dec
            Jan
            Feb
            Mar
            Apr
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            Aug
            Sep
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            Nov
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            Jan
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            Apr
            May
            Jun
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            Aug
            Sep
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            Jan
            Feb
            Mar
            Apr

                                                                                                  expenses index plunged 6.3%
                                                                                                  YoY and dipped 0.5% MoM
                        2016                               2017   2018              2019

        General Index (2014=100)
        Housing, Water, Electricity, Gas and Other Fuels

        Source: Dubai Statistics Centre

3 | Dubai Real Estate Market 2nd Quarter 2019 Review
Residential Supply
• 8,487 residential units, 25% of the total         Residential Supply
  estimated supply for 2019, have been              2016-2020
  completed YTD                                     (’000 UNITS)
• More than half of these completions were
  concentrated in three areas: Dubailand,
  Jumeirah Village Circle and Al Furjan
• For the rest of the year, projected supply mix
  is composed of 80% apartments (20,897 units)
  and 20% villas (5,133 units), all expected to                                                                              2020E
  finish construction before year-end                15.8 67.8     631
                                                                                                                             2019E
• Approximately 10,000 apartments currently
                                                               5.6 29.0     597
  under construction are in Business Bay, Dubai                   597                                                        2018
  Silicon Oasis, Jumeirah Village Circle,
                                                                     529                                                     2017
  Dubailand and Al Furjan. For villas, 73% of the
  new build units will be in Mohammed Bin                                  499                                               2016
  Rashid City and Dubailand
• Available data for new off-plan projects
  announced is estimated at 3,700 units from           Existing Urban Villas/Apartments

  twelve projects expected to handover in a            New Apartments*

  matter of three years                                New Villas*

• Notable projects launched during the quarter      *May be subject to significant downward adjustment
                                                    Source: Dubai Statistics Centre, REIDIN, MEED Projects, ValuStrat
  include Arabian Ranches 3 (988 units), Creek
  Edge Dubai Creek Harbour (554 units), Grand
  Blue by Elie Saab Dubai Marina (631 units),
  Sur La Mer (147 units) and Wilton Park MBR
  City (320 units)

    Residential Sales
• Off plan sales transaction volume continued       Ready Sales Volumes
  to rally upwards during the last nine months,
  as the first quarter saw off-plan sales
  increase 7.6% YoY, however, ready property                         -1.2%                                    0.4%
                                                                     Last Year                                Last Quarter
  sales fell 1.2% YoY, but stabilised since Q1
• Q2 saw the highest share (28%) of ready villa
  purchases priced between AED 1M - AED 2M
  since 2016, and a significant share of 9.6% of
  villas priced above AED 10 million
• Ready homes ticket size grew 10.2% QoQ and
  off-plan declined 7.1% QoQ
• The average transacted ticket size for off plan   Off-plan Sales Volumes
  was AED 1.48 million and for ready properties
  AED 1.8 million                                                    7.6%                                     5.5%
• The median transacted price for ready                              Last Year                                Last Quarter

  apartments stood at AED 9,257 per sq m (AED
  860 per sq ft), down 14.9% YoY and 1.1% QoQ
• For ready villas, the median transacted price
  was AED 8,966 per sq m (833 per sq ft), down
  15.8% YoY and 6.8% QoQ

                                                    Source: REIDIN, ValuStrat

                                                                                                      www.valustrat.com | 4
Residential Rents
     • Overall residential asking rents fell 10.6% YoY           Residential Asking Rents
     • However, on a quarterly basis asking rents
       dropped 3.3%
                                                                                   -18.2%                           -10.6%
                                                                                   Last 2 Years                     Last Year

     • Compared to the same period last year, listed
       rents were down 10.9% for apartments and
       8.1% for villas

     • Average annual rents for 2-bed villas stood at
       AED 137,000, 3-beds at AED 161,000, and
       4-bedroom villas remained at AED 212,000                                    -5.2%                            -3.3%
                                                                                   Last 6 Months                    Last Quarter

     • The citywide average rents per annum for
       studio apartments were AED 49,000, 1-bed at
       AED 68,000, 2-bed was AED 99,000, and
       3-bedroom apartments were AED 131,000

     • Residential occupancy in Dubai is estimated
                                                                 Source: REIDIN, ValuStrat
       at 84%

         Office Supply
     • ICD Brookfield Place secured three              Office Supply
       pre-let agreements during Q2 with a             2016-2020
       combined space of 5,110 sq m (55,000            (Million sq m GLA)
       sq ft) GLA ahead of its official opening

     • Approximately 74,467 sq m (801,555
       sq ft) GLA finished construction during                                                                                  0.37
       the quarter which includes offices in
                                                                                                         0.50
       National Industries Park, Dubai South
       and Dubai Wholesale City                                                                                                        9.20
                                                                                                  8.81
                                                                                                                 8.81
                                                                            8.70
     • Available data on remaining office space
       under construction is estimated at                 8.47
       497,670 sq m (5.4 million sq ft) GLA
       expected for delivery in 2019

     • These include Mashreq Bank HQ
       Downtown with 35,000 sq m (376,737
       sq ft) GLA, Dubai Islamic Bank office
       tower Al Nahda 1 at 23,339 sq m
       (251,213 sq ft) GLA and flydubai HQ                2016              2017                  2018   2019E              2020E
       Warsan 3 with 35,025 sq m (377,006
       sq ft) GLA                                          Existing Stock            Expected Supply
                                                       Source: REIDIN, MEED Projects, ValuStrat

5 | Dubai Real Estate Market 2nd Quarter 2019 Review
Office Sales
• There were 374 office sales transactions            Office Median Transacted Prices
  during the second quarter, 3.4% lower than
  the previous quarter
                                                                      -29.8%               -10.9%
                                                                      Last 2 Years         Last Year
• Overall transacted office prices were 10.9%
  lower than last year, and down 2.1% QoQ

• The median transacted price stood at AED
  7,373 per sq m (AED 685 per sq ft)

• Business Bay was the most popular choice for
  office sales with a share of 52%, followed by                       -22.0%               -2.1%
  Jumeirah Lake Towers (JLT) with 27% of                              Last 6 Months        Last Quarter

  overall transactions this quarter

• The median size of offices sold in Business
  Bay was 84 sq m (906 sq ft) and 104 sq m
  (1,118 sq ft) in JLT. 42,359 sq m (455,952 sq ft)
  of total Gross Leasable Area was sold during
                                                      Source: REIDIN, ValuStrat
  Q2, amounting to a total investment value of
  more than AED 344 million

    Office Rents
• Median office asking rents declined by 7.5%         Office Median Asking Rents
  YoY and fell 2.3% QoQ

• Asking rents for this quarter were 15.9%
                                                                      -15.9%               -7.5%
                                                                      Last 2 Years         Last Year
  lower than two years ago

• The citywide median asking rent for a typical
  office size stood at AED 945 per sq m (AED 88
  per sq ft)

• Median asking rents commanded by Dubai
  International Financial Centre (DIFC) were at                       -3.3%                -2.3%
  AED 2,088 per sq m (AED 194 per sq ft) for                          Last 6 Months        Last Quarter

  typically sized units between 93 – 186 sq m
  (1,000 – 2,000 sq ft)

• In Business Bay, median asking rents stood at
  AED 818 per sq m (AED 76 per sq ft) for a
  typical office area of less than 93 sq m (1,000
                                                      Source: REIDIN, ValuStrat
  sq ft)

• Office occupancy in Dubai is estimated at 82%

                                                                                      www.valustrat.com | 6
Retail Supply
     • Carrefour hypermarket occupying a total area       Malls and Shopping Centres
       of 117,327 sq m (109,000 sq ft) at Cityland Mall   (‘000 sq m GLA)
       in Dubailand was opened                                                                                                       762

     • A new 1,301 sq m (14,000 sq ft) GLA mall
       dedicated to motorcycles, named as
       Motorcycle Mall was opened along Umm
       Suqeim Road                                                                                                 135

     • Meraas and Samanea Group agreed to build a
       52,955 sq m (570,000 sq ft) mall project near
       International City

     • Al Ghurair Centre announced the completion                                                  22
       of phase one for its 6,968 sq m (75,000 sq ft)
                                                                                   13
       Reel Cinema megaplex

     • Data available for upcoming retail projects to
       be completed this year was adjusted upwards
       to 1.4 million sq m (15.1 million sq ft) GLA                32             263             498             1,026             1,696

     • According to a Dubai Economic Department                Convenience
                                                                (< 3k sq m)
                                                                              Neighbourhood
                                                                               (3k-10k sq m)
                                                                                               Community
                                                                                               (10k-30k sq m)
                                                                                                                  Regional
                                                                                                                (30k-90k sq m)
                                                                                                                                 Super Regional
                                                                                                                                   (> 90k sq m)

       report, the first four months of 2019, 258
       restaurants and 169 coffee shops were
                                                              Retail Completed
       opened, growing 25% annually                           Retail Under Construction
                                                          Source: REIDIN, ValuStrat

         Retail Performance
     • Emaar Malls announced footfall in its asset        Number of Malls and Shopping Centres
       portfolio grew 3% YoY to 36 million visitors
       during Q1 2019                                                                 2

     • The Dubai Mall welcomed 22 million visitors
       during the first three months of 2019
                                                                                                    1
     • Occupancy for Emaar’s collection of malls                                                                     3                 4
       and community centres was kept at a healthy
       rate of 92%, down 3% YoY

     • Souq.com have transitioned and relaunched
       as Amazon.ae, marking the official take-over
       by the US e-commerce giant                                  16              46              28               19                11

                                                               Convenience    Neighbourhood    Community          Regional       Super Regional
                                                                (< 3k sq m)    (3k-10k sq m)   (10k-30k sq m)   (30k-90k sq m)     (> 90k sq m)

                                                              Retail Completed
                                                              Retail Under Construction
                                                          Source: REIDIN, ValuStrat

7 | Dubai Real Estate Market 2nd Quarter 2019 Review
Hotel Supply
• As of May, total hotel room and hotel              Hotel Room Supply
  apartment stock stood at 93,734 and 24,648         2016-2020
  keys respectively                                  (’000 KEYS)
• An estimated 2,222 rooms were added from                                                                              10.7
  the opening of seven hotels
• Notable openings include Vida Hotel Emirates                                                     17.7
  Hills (160 keys), Hyatt Place Wasl District (202
  rooms), The Grayton Hotel Al Mankhool (96
  keys), Millennium Place Dubai Marina (453
  rooms) and Rove at the Park (579 keys)
• An estimated seven new hospitality project
  announcements were made during Q2 to add                                                                              134
  an approximately 1,572 keys during the next                                                      116
  three years                                                                         116
                                                        103            107
• These include Diamond Central -Business
  Bay (220 rooms), Island Central - Deira
  Islands (267 keys), Central House - City Walk
  (60 rooms) and Jaz in the City - Deira (234           2016           2017          2018          2019E                2020E

  keys)
• Dubai’s total room stock is projected to               Hotel & Serviced Apt Rooms                New Supply

  exceed 130,000 by end of this year                 Source: DTCM, MEED Projects, ValuStrat

    Hotel Performance
• Total international guests Jan-May 2019            Source of Dubai Visitors by Region
  reached 7.16 million, no change when               Jan-May 2019
  compared to the same period last year
• Citywide occupancy rate for the same period
  stood at 77%, down 5% YoY                                                     5%
                                                                                        2%

• Revenue per Available Room (RevPAR) and                                  6%                               22%

  Average Daily Rate (ADR) witnessed
  double-digit declines on annual basis,                       10%
  plunging 15.6% and 10.7%, respectively
• The top three source markets were from
  Western Europe (22%), GCC (17%), South Asia
                                                           10%
  (16%)
• Russian tourist numbers declined 8% YoY                                                                         17%
• During Q1 2019, visitor count at Dubai Parks
  and Resorts weakened 11% YoY to 760,000                            12%
  guests
• Shortly before its official opening, the                                                   16%
  17,000-seater Dubai Arena located in City
  Walk, was renamed to Coca Cola Arena, after
  the same company acquired naming rights                Western Europe                            Russia, CIS & Eastern Europe
  from Meraas. The new entertainment venue is            GCC                                       Americas

  expected to host local, regional and                   South Asia                                Africa

  international concerts and events which could          North Asia & South East Asia              Australia
                                                         MENA
  positively impact tourism sector
                                                     Source: DTCM

                                                                                                     www.valustrat.com | 8
Industrial Investment/Supply
       • China announced a plan to invest AED 12.5                 Industrial Prices
         billion in Dubai logistics facilities involved in         (AED/sq m)
         storage and production
       • A Dubai-based logistics services company
         opened a 60,000 sq m (645,834 sq ft)
                                                                  5,000
         semi-automated warehouse fulfilment centre
         in Dubai Logistics City                                  4,000           3,584
                                                                                                       3,289               3,224
       • Dubai South welcomed the opening of a 3,200
                                                                  3,000
         sq m (34,445 sq ft) B2C exports facility owned                                     2,211
         by DHL                                                   2,000
                                                                                                                 1,399                  956
       • Komatsu Middle East opened a 46,298 sq m                 1,000
         (498,347 sq ft) modern training and
         demonstration facility in Jebel Ali
                                                                                   Al Quoz            Dubai                 Jebel Ali
       • Completed industrial developments net                                                        Investment            Free Zone
         project value totalled AED 3.06 billion during                                               Park
         the first half of 2019
       • Available data on upcoming warehouses and
                                                                          Rent - Upper Range         Rent - Lower Range
         industrial facilities slated for completion until
                                                                   Source: ValuStrat
         next year stood at 252,569 sq m (2.7 million
         sq ft) BUA

                Industrial Performance
       • Industrial property prices experienced                           • Higher rates were recorded for properties
         quarterly declines, most notably with                              with specialised provisions including cold
         older-aged properties having lower eaves                           storage facilities
         headroom height in Jebel Ali Free Zone
                                                                          • Rental rates have also dropped QoQ in the
       • Asking rates quoted were generally in the                          city's industrial areas apart from Dubai South
         range between AED 2,152 per sq m to AED                            which has remained relatively stable with
         5,290 per sq m (AED 200 per sq ft to AED 550                       annual lease rates ranging from AED 377 per
         per sq ft) depending on various factors such                       sq m to AED 549 per sq m (AED 35 per sq ft to
         as location, size, condition and age of the                        AED 51 per sq ft)
         building

Industrial Rental Rates
(AED/sq m)

                      538                                                                                                 549
                                                        484
                                       377                                       377                361                          377
                             301                                                                             269
                                               240              251
                                                                                          122
    Rent High

    Rent Low
                        Al Quoz          Al Qusais     Dubai Investment             Jebel Ali          Jebel Ali          Dubai South
                                                             Park                  Free Zone        Industrial Area
Source: ValuStrat

9 | Dubai Real Estate Market 2nd Quarter 2019 Review
Valustrat
In
Media

  27th June, 2019                                              3rd May, 2019
  Dubai and Abu Dhabi cheaper for                              Dubai said to mull plan to freeze rents
  residents on strong dollar despite rise in                   for 3 years
  cost of living ranking
                                                               According to a recent report by real estate consultancy
  One of the main drivers of cheaper costs for existing        ValuStrat, rents in Dubai in the first quarter of 2019
  residents are falling property prices with the UAE           have declined by 23.5 percent since 2014 and softened
  market slowing in recent years on the back of a              by 1.9 percent quarterly and 9 percent annually
  three-year oil slump that has dampened demand and
  contracted sales and rental prices. Residential rents in
  Abu Dhabi in the first quarter of this year, for example,
  fell 6.9 per cent year-on-year and 2.1 per cent
  quarter-on-quarter, according to data from leading
  real estate firm ValuStrat.

                                                               30th April, 2019
                                                               Declan King talks about ValuStrat’s
                                                               recent acquisition in the UK
  13th May, 2019                                               ValuStrat's Declan King explained the rationale behind
                                                               investment into a London-based firm of Chartered
  Dubai office rents become more                               Surveyors
  affordable
  ValuStrat had said that median office asking rents
  declined by 4.4 per cent year-on-year in the first
  quarter. The citywide median asking rent for a typical
  office size stood at Dh90 per square foot. Commercial
  office occupancy in Dubai was estimated at 84 per cent.
                                                               17th April, 2019
                                                               Property buyers are returning to Dubai
                                                               as prices continue to drop
                                                               “As capital values softened by an average of one per
                                                               cent per month for the last 16 months, a six-month
  10th May, 2019                                               streak in buying activity has been observed for both
                                                               off-plan and ready homes,” said Haider Tuaima, Head
  “Star” wars cuts hotel prices                                of Real Estate Research at ValuStrat.
  The Head of the Real Estate Research Department at
  Valustrat, Haider Tuaima, attributed the large number
  of rooms to the feasibility studies conducted by the
  hotel owners. He pointed out that the high occupancy
  rates achieved by Dubai hotels are the highest in the
  region and among the highest in the world, while the
  rates of decline in prices between five to six percent per
  year.

                                                                                              www.valustrat.com | 10
About
    ValuStrat is a leading consulting firm headquartered in Dubai providing
    Advisory, Valuations, Research, Industrial Consulting and Due Diligence
    services across a diverse range of industry sectors since 1977. Offices in
                                                                                                   Strategic
    the UAE, UK, Saudi Arabia, Pakistan and Qatar serve over 1,000 corporate                      Partners of
    clients in the Middle East. Client base includes financial institutions, local
    corporates, multinationals, governments, SMEs, family businesses and
    startups. Some of the key sectors serviced by ValuStrat’s consulting team
    include real estate, hospitality, healthcare, education, manufacturing, retail,                Financial
                                                                                                  Institutions
    entertainment, transport and FMCG. ValuStrat is a Royal Institution of
    Chartered Surveyors (RICS) Regulated Firm and the first company head
    quartered in all of MENA and Asia to be accepted into the prestigious RICS
    Tech Affiliate program.

      VPI
      ValuStrat Price Index

VPI Online www.valustrat.com/vpi

    The ValuStrat Price Index for Dubai’s office capital values is a
    valuation-based index constructed to represent the quarterly
    price change experienced by typical office space within Dubai.
    The ValuStrat Price Index for Dubai’s residential capital
    values is a valuation-based index constructed to represent
    the monthly price change experienced by typical residential
    units within Dubai. The ValuStrat Price Index for Dubai’s
    residential rental values is constructed to represent the
    quarterly rental change experienced by typical residential
    units within Dubai. The VPI applies weighted averages using           Director - Commercial Valuations
    data samples representing more than 90% of all property
    types across the city’s freehold locations and is built by our
    expert RICS Registered Valuers.
    Research Methodology
    Every effort has been made to ensure the accuracy of this
    document. New supply data covers 38 defined areas in Dubai
    including non-freehold areas. Only completed and under
    construction projects are included. The new supply data does
    not include announced projects, and projects in design phase.
    The new supply database does not take into account most
    private building projects. Prices are calculated from actual
    transactions that have been carefully cleansed to exclude
    duplicates, bulk sales and outdated transactions. Rental data         Associate Director & Head of Industrial Consulting
    is derived from a carefully cleansed database of listings that
    don’t include duplicates, potential errors and outliers.
    Copyright © ValuStrat Consulting FZCo. 2019
    This document is the property of ValuStrat Consulting FZCo
    and must not be reproduced or transmitted in any form or by           Clare Frances McCarron, MRICS
    any means, without the prior written consent of ValuStrat             Manager - Commercial Valuation
    Consulting FZCo. We welcome your constructive feedback
    and any corrections that may need to be made to this
    document. ValuStrat Consulting FZCo does not accept any
    liability in negligence or otherwise for any damage suffered by
    any party resulting from reliance on this document.
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