Dubai Market Overview - HY1 2017

While the Dubai real estate market has experienced a decline in prices over the last 2½ years, largely due to the drop in crude oil price, average sale prices have increased by 1.29% for apartments in the first half of 2017. However prices have decreased by 2.64% for villas, which can be attributed to the resultant increase in redundancies.

Average rental prices have continued downward, with apartments declining by 6.60% and villas by 9.85% compared to 2016 figures. We expect rental prices to recover in 2018, with new job creation bringing a fresh increase to tenant demand in the run up to Expo 2020.

More positively, average rental yields stood at 7.44% for apartments and 5.50% for villas, reinforcing Dubai’s position as one of the top cities in the world due to the attractive rental yields available to investors.

At Better Homes the highest number of units were sold in Dubai Marina, followed by Jumeirah Lake Towers and Dubai Sports City. In leasing the highest number of units rented were in Dubai Marina, followed by Jumeirah Lake Towers and Jumeirah Beach Residence.

India14.72%

Others57.67%

UK/GB7.36%

Lebanon6.75%

SaudiArabia7.98%

UAE5.52%

Nationality of sales customers in 2017

2011 2012 2013 2014 2015 2016 2017

1,300

1,200

1,100

1,000

900

800

700

600

1,400

1,500Apartments

Villasin A

ED

Average sales price trend / sq. ft. in Dubai*

Source: Better Homes* Based on Dubai’s most popular communities according to Better Homes’ transaction data.

Source: Better Homes

Compared to 2016, average apartment sale prices have increased by 1.29% and villa sale prices have decreased by 2.64%

Dubai Marina has the highest number of residential units transacted followed by Jumeirah Lake Towers and Dubai Sports City

DID YOU KNOW?

Sales summary

Improved economic conditions in the region has lead to an increase in buyers from Saudi Arabia, UAE, and Lebanon.

50k

250k

200k

150k

100k

Studio

1 bedroom

2 bedroom

3 bedroom

in A

ED

2011 2012 2013 2014 2015 2016 2017

Average rental price for apartments in Dubai*

For apartments, average rental prices have fallen by 6.46% in 2017

Dubai Marina has the highest number of apartments leased followed by JLT and JBR

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Lease summary

Source: Better Homes* Communities include Business Bay, Motor City, Jumeirah Village Circle, Dubai Sports City, The Views, Palm

Jumeirah, The Greens, Dubai Marina, Jumeirah Lake Towers and Downtown Dubai

250k

150k

50k

350k

400k

200k

100k

300k

2 bedroom

3 bedroomin A

ED

2011 2012 2013 2014 2015 2016 2017

5 bedroom

4 bedroom

Average rental price for villas in Dubai*

For villas, average rental prices have decreased by 8.20% in 2017

The Springs has the highest number of villas leased followed by Meadows and Arabian Ranches

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Lease summary

Source: Better Homes* Communities include: The Springs, Meadows, Jumeirah Park, Jumeirah Islands, Arabian Ranches,

Green Community, Jumeirah Village Circle and Jumeirah Village Triangle

Average rental price per sq. ft. in freehold communities

Average rental price per sq. ft. in freehold communities

9

8

7

6

5

4

3

2011 2012 2013 2014 2015 2016 2017

in p

erce

ntag

e

Apartments

Villas

Average Rental Yield in freehold communities in Dubai

Source: Better Homes

Source: Better Homes

Cash 63.9%

Mortgage 36.1%Cash payment vs mortgage

Note: Cash purchases have decreased from 73.7% in 2016 to 63.9% in 2017 and mortgage purchases have increased from 26.3% in 2016 to 36.1% in 2017, indicating a change in customer preferences.

Average rental yields for apartments stood at 7.44% and 5.50% for villas

According to the Global Property Guide, the rental yield in major cities is as follows:

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Yield summary3.21%

2.91%2.54%

2.4%

3 bedroomtownhouse 6%

Others 4%

1 bedroom apartment 36%

2 bedroom apartment 25%

Studio apartment 13%

3 bedroom apartment 7%

3 bedroomtownhouse 8%

Others 10%

1 bedroom apartment 42%

2 bedroom apartment 27%

Studio apartment 15%

3 bedroomapartment 7%

HY1 2017:Bedroom-wiseunits sold

HY1 2017:Bedroom-wise

units rented

Sales Rent

Popular units with most transactions

Source: Better Homes

0

DubaiMarina

DowntownDubai

JumeirahLake Towers

1.31%

-5.81%

-4.62%

3.62%

1.67%

-5.86%

LegendSales

Lease

Note: Average residential leasing prices have continued to decline with Downtown Dubai witnessing the highest drop. However average residential sales prices have witnessed an increase over 2016 with Jumeirah Lake Towers leading the way followed by Downtown Dubai and Dubai Marina. Source: Better Homes

Dubai property price variance2016

vs 2017

Sales Rent

Disclaimer:This report is based on data acquired from the Better Homes database and trusted sources. This publication is the sole property of Better Homes LLC and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Better Homes LLC. Readers are responsible for independently assessing the relevance, accuracy, and completeness of the information in this publication. Better Homes LLC will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication.

For queries or suggestions on this report, please email us at customercare@bhomes.com

About Better Homes:

Since we opened our doors in 1986, we have been the region’s leading property agency with a service offering that includes residential and commercial sales and leasing, property management, off plan sales and holiday homes. We have 13 branch offices across Dubai, Abu Dhabi and Sharjah; in addition to Oman and Qatar and with a Corporate Office located in Business Bay.

For more information about Better Homes, please visit bhomes.com

Top freehold community searches on Dubizzle in Dubai (HY1 2017)

1

3

2

4

5

6

Dubai Marina1 bedroom apartment

Dubai Marina2 bedroom apartment

International CityStudio

Mirdif3 bedroom villa

The Springs2 bedroom villa

The Springs3 bedroom villa

Dubai Marina1 bedroom apartment

Dubai Marina2 bedroom apartment

JLT1 bedroom apartment

Dubai Silicon Oasis1 bedroom apartment

JVC1 bedroom apartment

Mira3 bedroom villa

Source: Dubizzle