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Dubai Residential Capital Values 2020 April

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The VPI – Residential Capital Values for Dubai as of April 2020 stood at 71.9 points, declining at accelerated monthly rate of 1.9%, -10.8% annually. The COVID-19 coronavirus pandemic continued to show its impact during the month of April as demand decreased due to the stay at home campaign supporting the nationwide disinfection program.

All properties monitored by the index saw monthly capital values marginally decline, the highest of which was apartments in Jumeirah Village and Dubai Production City with -2.1%, and the lowest registered capital value decline was -1.6% in The Greens. The weighted average residential price per square foot fell below AED 1,000 since August 2019, currently at AED 915 per sq ft, not too dissimilar to average rates during 2012/11.

With the stay-at-home measures put in place, it came as no surprise that April cash sales transaction volume performance was just half of what was reported for March. Ready homes sales volume witnessed a steep monthly fall of 75%, off-plan homes sales declined 32% when compared to March. Properties developed by Emaar, Dubai Properties, Dubai Holding and Danube, topped the sales charts overall. Top off-plan locations transacted during April were in Dubai Creek Harbour, Jumeirah Village, Umm Suqeim Third, and Jumeirah Beach Residence. Most transacted ready homes were in Palm Jumeirah, Dubai Marina, Town Square, Arabian Ranches and Downtown Dubai.

ValuStrat Price Index - Dubai Residential Capital ValuesBase: Jan 2014=100

71.9

Monthly Change

-1.9%

Annual Change

-10.8%

Weighted Average Value per SQFT

915AED

Weighted Average Capital Value

1,685,686AED

1 | Residential Capital Values - March 2020

www.valustrat.com/vpi | 2

Sales ResidentialPrices (AED/SQFT)2006 YTD

VPI ResidentialCapital Values2014 YTD

www.valustrat.com/vpi | 2

1000

2000

1500

500

0

2006

2007

2009

2011

2012

2013

2015

2016

2017

2018

2019

2008

1,950

2010

898

2014

1,380

2020

940

2014 2015 2016 2017 2018 2019 2020

120

100

80

60

0

20

40

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan

112.9

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Feb

Jan

Feb

Mar

Apr

71.9

Source: 2006-2009 Market Listing, 2010-YTD DLD (Ready Cash Sales)

Source: ValuStrat, Base:Jan 2014=100

TypicalVillas

Location

Al Furjan

Arabian Ranches

Emirates Hills

Jumeirah Islands

Jumeirah Park

Jumeirah Village Villas

Meadows

Palm Jumeirah Villas

The Lakes

Victory Heights

Capital Value (AED)

3,343,213

2,871,888

31,450,000

5,099,060

4,013,284

1,698,820

3,843,050

11,590,000

3,026,400

5,016,176

VPI

66.3

64.4

89.7

63.5

68.9

68.3

65.9

98.2

72.3

70.0

Monthly Change

-2.0%

-1.9%

-1.9%

-2.0%

-2.0%

-2.0%

-1.8%

-1.8%

-1.9%

-1.9%

Annual Change

-10.4%

-11.1%

-8.5%

-10.5%

-10.0%

-13.6%

-9.0%

-7.5%

-10.2%

-10.3%

3 | Residential Capital Values - March 2020

TypicalApartments

Location

Burj Khalifa

Business Bay

Discovery Gardens

Downtown Dubai

Dubai Marina

Dubai Production City

Dubai Sports City

International City

Jumeirah Beach Residence

Jumeirah Village

Motor City

Palm Jumeirah

The Greens

Remraam

The Views

Jumeirah Lake Towers

VPI

72.9

79.8

72.0

71.4

68.3

76.6

78.1

66.7

71.6

63.3

72.1

86.1

79.1

79.2

69.5

75.0

Capital Value (AED)

2,265,120

948,010

345,092

1,332,985

1,689,600

318,861

835,202

318,890

2,201,093

1,437,920

655,215

1,181,750

1,890,060

434,910

728,403

1,408,250

Monthly Change

-1.8%

-1.9%

-2.0%

-1.9%

-1.9%

-2.1%

-1.9%

-1.9%

-1.7%

-1.9%

-2.1%

-2.0%

-2.0%

-2.0%

-1.6%

-1.8%

Annual Change

-10.8%

-11.2%

-13.3%

-9.8%

-10.2%

-13.5%

-9.1%

-8.1%

-10.2%

-10.3%

-11.1%

-10.3%

-11.0%

-11.1%

-10.4%

-10.6%

www.valustrat.com | 4

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5 | Residential Capital Values - March 2020

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Copyright © ValuStrat Consulting FZCo. 2020This document is the property of ValuStrat Consulting FZCo and must not be reproduced or transmitted in any form or by any means, without the prior written consent of ValuStrat 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.

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 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.

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ValuStrat is a leading consulting firm headquartered in Dubai providingAdvisory, Valuations, Research, Industrial Consulting and Due Diligenceservices across a diverse range of industry sectors since 1977. Offices inthe UAE, UK, Saudi Arabia, Pakistan and Qatar serve over 1,000 corporateclients in the Middle East. Client base includes financial institutions, localcorporates, multinationals, governments, SMEs, family businesses andstartups. Some of the key sectors serviced by ValuStrat’s consulting teaminclude real estate, hospitality, healthcare, education, manufacturing, retail,entertainment, transport and FMCG. ValuStrat is a Royal Institution ofChartered Surveyors (RICS) Regulated Firm and the first company headquartered in all of MENA and Asia to be accepted into the prestigious RICSTech Affiliate program.

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