REIDIN United Arab Emirates Residential Property Price Indices: SEPTEMBER 2017

Results - Edition:106

October 22, 2017

Dubai Market Analysis

Dubai Residential Property Price Indices: Sales Price Indices

Dubai Residential Property Price Indices: Rental Price Indices

Dubai Gross Rental Yields and Price-to-Rent Ratios

Dubai Residential Property Price Indices and Financial Indicators

Page

3

7

11

13

Abu Dhabi Market Analysis

Abu Dhabi Residential Property Price Indices: Sales Price Indices

Abu Dhabi Residential Property Price Indices: Rental Price Indices

Abu Dhabi Gross Rental Yields and Price-to-Rent Ratios

14

18

22

Methodology and Coverage 25

REIDIN United Arab Emirates Residential Property Price Indices September 2017 Results

The Dubai Residential

Property Sales Price Index

for all residential decreased

by 1.5 points, from 256.7 to

255.2, which represents a

decreased of 0.59% in

September 2017. On the

other hand, prices

decreased 1.97 % y-o-y.

Apartment sales prices

registered a decrease in

September 2017. Prices

decreased 0.79% m-o-m

and decreased 2.23% y-o-y.

Villa sales prices registered

an increase in September

2017. Prices increased

0.28% m-o-m but

decreased 0.91% y-o-y.

Dubai Residential Property Price IndicesSales Price Indices

3

Dubai Residential Property Price IndicesSales Price Indices

Apartment

300

250

200

100

0

100.0

234.4 232.7 230.9

Villa

400

300

200

100

0

100.0

442.9 441.3 442.6

All Residential

300

270

200

100

0

100.0

258.4 256.7 255.2

2003 Jan 2017 Jul 2017 Sep2017 Aug

M-o-M:

-0.59% M-o-M:

-0.79% M-o-M:

0.28%

4(January 2003 = 100)

2003 Jan 2017 Jul 2017 Sep2017 Aug2003 Jan 2017 Jul 2017 Sep2017 Aug

Dubai Residential Property Price IndicesSales Price Indices

Last 1 Month Last 3 Month Last 6 Month Last 1 Year Last 2 Year

Apartment (%) Villa (%)Residential (%)

Sales Price Indices

M-o-M

-0.59% M-o-M

-0.79% M-o-M

0.28%

5

-0.59%

-1.50%-1.23%

-1.97%

-3.71%

-0.79%

-1.72% -1.61%-2.23%

-3.84%

0.28%

-0.60%

0.35%

-0.91%

-3.20%

-2,5

-5

0

Dubai Residential Property Price IndicesSales Price Indices and Monthly Changes

ALL RESIDENTIAL APARTMENT VILLA

Month

(Jan.2003=100)

Index

NumberM-o-M

Index

NumberM-o-M

Index

NumberM-o-M

January 2017 259.1 -0.31% 235.4 -0.13% 441.3 -1.07%

February 2017 259.4 0.10% 235.7 0.12% 441.6 0.06%

March 2017 258.4 -0.37% 234.6 -0.44% 441.0 -0.12%

April 2017 258.3 -0.02% 234.3 -0.13% 443.0 0.44%

May 2017 259.0 0.25% 234.8 0.18% 445.3 0.53%

June 2017 259.1 0.04% 234.9 0.06% 445.2 -0.02%

July 2017 258.4 -0.29% 234.4 -0.23% 442.9 -0.52%

August 2017 256.7 -0.63% 232.7 -0.70% 441.3 -0.36%

September 2017 255.2 -0.59% 230.9 -0.79% 442.6 0.28%

6

The Dubai Residential

Property Rental Price Index

for all residential decreased

by 0.9 points, from 92.0 to

91.1, which represents a

decrease of 0.96% in

September 2017. On the

other hand, prices decreased

6.32% y-o-y.

Apartment rental prices

registered a decrease in

September 2017. Prices

decreased 0.85% m-o-m and

also decreased 6.07% y-o-y.

Villa rental prices registered

a decrease in September

2017. Prices decreased

1.49% m-o-m and also

decreased 7.74% y-o-y.

Dubai Residential Property Price IndicesRental Price Indices

7

Dubai Residential Property Price IndicesRental Price Indices

Apartment

110

105

100

90

0

100.0

91.0 90.3 89.5

Villa

130

120

100

0

100.0

104.1103.2

101.6

All Residential

120

110

100

90

0

100.0

92.8 92.0 91.1

8(January 2009 = 100)

M-o-M:

-0.96% M-o-M:

-0.85% M-o-M:

-1.49% 2009 Jan 2017 Jul 2017 Sep2017 Aug

2009 Jan 2017 Jul 2017 Sep2017 Aug2009 Jan 2017 Jul 2017 Sep2017 Aug

Dubai Residential Property Price IndicesRental Price Indices

Rental Price Indices

-0

-6

-8

-11

-15

Last 1 Month Last 3 Month Last 6 Month Last 1 Year Last 2 Year

Apartment (%) Villa (%)Residential (%)

M-o-M

-0.96% M-o-M

-0.85% M-o-M

-1.49%

9

-0.96%

-2.71%-4.19%

-6.32%

-10.65%

-0.85%

-2.56%-4.19%

-6.07%

-10.03%

-1.49%

-3.55% -4.15%

-7.74%

-14.01%

Dubai Residential Property Price IndicesRental Price Indices and Monthly Changes

ALL RESIDENTIAL APARTMENT VILLA

Month

(Jan.2009=100)

Index

NumberM-o-M

Index

NumberM-o-M

Index

NumberM-o-M

January 2017 95.6 -0.16% 94.0 -0.07% 106.4 -0.63%

February 2017 94.8 -0.90% 93.0 -1.04% 106.3 -0.10%

March 2017 95.1 0.35% 93.4 0.45% 106.0 -0.26%

April 2017 94.7 -0.39% 93.0 -0.41% 105.7 -0.31%

May 2017 94.5 -0.21% 92.7 -0.30% 106.0 0.32%

June 2017 93.6 -0.92% 91.8 -0.97% 105.4 -0.63%

July 2017 92.8 -0.92% 91.0 -0.86% 104.1 -1.23%

August 2017 92.0 -0.86% 90.3 -0.87% 103.2 -0.86%

September 2017 91.1 -0.96% 89.5 -0.85% 101.6 -1.49%

10

Dubai Gross Rental Yields (%)

Apartment

0

Villa

5,4

0

All Residential

7,0

0

2017 Aug2017 Jul

5.4% 5.4%

5.3%

7.0%

7.4%

5.3%

7.4% 7.4% 7.4%

7.0% 7.0% 7.0%

11

2017 Sep

7,4

2017 Aug2017 Jul 2017 Sep2017 Aug2017 Jul 2017 Sep

5,2

Dubai Price-to-Rent Ratios

Apartment

0

Villa

0

All Residential

0

19.1

19.2

19.5

14.8

14.0

19.5

14.0 14.0 14.0

14.7

14.8 14.8

12

19

19,5

14,8

19,314,0

2017 Aug2017 Jul 2017 Sep

2017 Aug2017 Jul 2017 Sep2017 Aug2017 Jul 2017 Sep

Dubai Residential Property Price Indices & Financial Indicators

360.1 368.7

163.5 176.2

256.7 255.2

320

250

165

80

0

Oil Price Index Dubai Residential Property Price Index Gold Price Index

(January 2003 = 100)

2017 Aug 2017 Sep

M-o-M

2.38%M-o-M

7.74%M-o-M

-0.59%

Dubai Residential Property Price Indices & Financial Indicators

13

The Abu Dhabi Residential

Property Sales Price Index

for all residential decreased

by 1.0 points, from 94.0 to

93.0, which represents a

decrease of 1.11% in

September 2017. On the

other hand, prices

decreased 9.29% y-o-y.

Apartment sales prices

registered a decrease in

September 2017. Prices

decreased 1.35%

m-o-m and also decreased

9.50% y-o-y.

Villa sales prices registered a

decrease in September

2017. Prices decreased

0.28% m-o-m and also

decreased 8.63% y-o-y.

Abu Dhabi Residential Property Price Indices: Sales Price Indices

14

Apartment

100

0

Villa

100

0

100.0

95.894.9 94.7

All Residential

100

0

100.0

95.194.0

93.0

Abu Dhabi Residential Property Price IndicesSales Price Indices

100.0

94.993.8

92.5

15(January 2014 = 100)

M-o-M:

-1.11% M-o-M:

-1.35% M-o-M:

-0.28% 2014 Jan 2017 Jul 2017 Sep2017 Aug

2014 Jan 2017 Jul 2017 Sep2017 Aug2014 Jan 2017 Jul 2017 Sep2017 Aug

Sales Price Indices

-0%

-5%

-8%

-11%

-14%

Last 1 Month Last 3 Month Last 6 Month Last 1 Year Last 2 Year

Apartment (%) Villa (%)Residential (%)

M-o-M

-1.11% M-o-M

-1.35% M-o-M

-0.28%

Abu Dhabi Residential Property Price IndicesSales Price Indices

16

-1.11%

-2.97%-4.40%

-9.29%

-10.88%

-1.35%

-3.29%

-4.87%

-9.50%-10.30%

-0.28%

-1.94%-2.86%

-8.63%

-12.67%

Abu Dhabi Residential Property Price IndicesSales Price Indices and Monthly Changes

ALL RESIDENTIAL APARTMENT VILLA

Month

(Jan.2014=100)

Index

NumberM-o-M

Index

NumberM-o-M

Index

NumberM-o-M

January 2017 99.4 -1.51% 99.1 -1.56% 100.3 -1.34%

February 2017 98.3 -1.13% 98.0 -1.11% 99.1 -1.21%

March 2017 97.3 -1.00% 97.2 -0.81% 97.5 -1.64%

April 2017 96.8 -0.47% 96.8 -0.48% 97.0 -0.44%

May 2017 97.2 0.41% 97.1 0.40% 97.5 0.45%

June 2017 95.9 -1.41% 95.6 -1.54% 96.5 -0.95%

July 2017 95.1 -0.80% 94.9 -0.81% 95.8 -0.82%

August 2017 94.0 -1.09% 93.8 -1.17% 94.9 -0.85%

September 2017 93.0 -1.11% 92.5 -1.35% 94.7 -0.28%

17

The Abu Dhabi Residential

Property Rental Price Index

for all residential decreased

by 0.7 points, from 92.7 to

92.0, which represents a

decrease of 0.73% in

September 2017. On the

other hand, prices

decreased 10.70% y-o-y.

Apartment rental prices

registered a decrease in

September 2017. Prices

decreased 1.00% m-o-m

and also decreased 11.21%

y-o-y.

Villa rental prices registered

an increase in September

2017. Prices increased 0.25%

m-o-m but decreased 8.76%

y-o-y.

Abu Dhabi Residential Property Price IndicesRental Price Indices

18

Apartment

100

0

Villa

100

0

100.0

92.8 92.4 92.6

All Residential

100

0

100.0

93.892.7

92.0

100.0

94.092.8

91.9

Abu Dhabi Residential Property Price IndicesRental Price Indices

19(January 2014 = 100)

M-o-M:

-0.73% M-o-M:

-1.00% M-o-M:

0.25% 2014 Jan 2017 Jul 2017 Sep2017 Aug

2014 Jan 2017 Jul 2017 Sep2017 Aug2014 Jan 2017 Jul 2017 Sep2017 Aug

Rental Price Indices

-5%

-10%

-15%

-20%

Last 1 Month Last 3 Month Last 6 Month Last 1 Year Last 2 Year

Apartment (%) Villa (%)Residential (%)

-0.73%-2.74%

-4.37%

-10.70%

-15.00%

-1.00%-3.33%

-4.74%

-11.21%

-16.30%

0.25%

-0.50%-3.02%

-8.76% -9.74%

M-o-M

-0.73% M-o-M

-1.00% M-o-M

0.25%

Abu Dhabi Residential Property Price IndicesRental Price Indices

20

0%

Abu Dhabi Residential Property Price IndicesRental Price Indices and Monthly Changes

ALL RESIDENTIAL APARTMENT VILLA

Month

(Jan.2014=100)

Index

NumberM-o-M

Index

NumberM-o-M

Index

NumberM-o-M

January 2017 98.5 -1.57% 98.7 -1.59% 97.8 -1.46%

February 2017 97.4 -1.20% 97.5 -1.26% 96.9 -0.98%

March 2017 96.2 -1.14% 96.4 -1.07% 95.5 -1.42%

April 2017 95.4 -0.88% 95.7 -0.74% 94.1 -1.45%

May 2017 95.5 0.13% 96.0 0.28% 93.6 -0.50%

June 2017 94.6 -0.93% 95.0 -1.01% 93.1 -0.60%

July 2017 93.8 -0.90% 94.0 -1.06% 92.8 -0.30%

August 2017 92.7 -1.13% 92.8 -1.30% 92.4 -0.45%

September 2017 92.0 -0.73% 91.9 -1.00% 92.6 0.25%

21

Abu Dhabi Gross Rental Yields (%)

Apartment

7,5

0

Villa

0

All Residential

7,2

0

6.3% 6.3% 6.3%

7.2%

7.5%

6.3%

7.4% 7.4%

7.5%

7.2% 7.2% 7.2%

22

7,4

6,3

6.2

2017 Aug2017 Jul 2017 Sep

2017 Aug2017 Jul 2017 Sep2017 Aug2017 Jul 2017 Sep

Abu Dhabi Price-to-Rent Ratios

Apartment

0

Villa

0

All Residential

0

16.4

16.3 16.3

14.4

13.9

16.3

13.9 13.9 13.9

14.4 14.4 14.4

23

14.4

13.9

16.4

16.3

2017 Aug2017 Jul 2017 Sep

2017 Aug2017 Jul 2017 Sep2017 Aug2017 Jul 2017 Sep

Abu Dhabi Residential Property Price Indices & Financial Indicators

102.7 105.1

47.4 51.0

94.0 93.0100

75

50

25

0

Oil Price Index Abu Dhabi Residential Property Price Index Gold Price Index

(January 2014 = 100)

2017 Aug 2017 Sep

M-o-M

2.38%M-o-M

7.74%M-o-M

-1.11%

Abu Dhabi Residential Property Price Indices & Financial Indicators

24

REIDIN-UAE Residential Property Price Indices Methodology & Coverage

REIDIN UAE Residential Property Price Indices (RPPIs) are designed to be a reliable and consistent benchmark of housing sales

and rent prices in Dubai and Abu Dhabi. The purpose of the indices is to measure the average differences in house prices in a

particular geographic market through a timeline.

Methodology and Coverage

Monthly REIDIN Dubai and Abu Dhabi RPPIs are calculated based on moving average median prices– an approach that is widely

used for indexing housing prices – which involves median of sales prices of properties in a corresponding region. The median

series of sales price data is constructed by taking “the median price/sqm” of all properties during a certain time period. REIDIN

Dubai RPPI employs “weighted” average of the median prices of areas for the calculation of the monthly index series. The

weights used in the methodology are the “existing supply” of each area which is derived from housing stock and will be

updated semi-annually. All Dubai indices are calculated by using the Laspeyres price index formula and a moving average

algorithm. On the other hand, REIDIN Abu Dhabi RPPIs are calculated by using the Dutot price index formula (defined as the

ratio of the unweighted arithmetic average of the prices in the current period t to base period 0) and a moving average

algorithm.

The official Dubai and Abu Dhabi Real Estate Residential Sales Price Indices provided to Bank of International Settlements (BIS)

by the Central Bank of United Arab Emirates (CBUAE) is designed and produced by REIDIN.

25

LEGAL NOTICE

Although all values, statements and visual materials in this report are provided, indicated and calculated neatly

by REIDIN, we make no warranty, assurance or guarantee that materials and values are absolutely accurate.

REIDIN highly recommends that this report should not be taken as an endorsement of or recommendation on

any participation by any intending investor or any other party in any transaction whatsoever. This information is

presented exclusively for use by REIDIN clients and professionals and all rights to the material are reserved and

cannot be reproduced without prior written permission of REIDIN.

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