Property Review Northern Emirates Real Estate Report
Transcript of Property Review Northern Emirates Real Estate Report
BUILDING CONSULTANCY
The building consultancy team at Asteco have a wealth of experience and an in-depth knowledge of construction technology, building pathology and effective project management methods which enable us to provide our Clients with a comprehensive building consultancy service.
Technical Due Diligence
Schedules of Dilapidations
Building Condition Surveys
Snagging Inspections
Schedules of Condition
Defect Analysis
Area Verification
Project Monitoring and Audits
Project Management
Life Cycle Costing
RERA Technical Reports
Insurance Reinstatement ValuationFor more details, please contact
Nick Constantine, BSc (Hons) MRICS, Head of Building Consultancy [email protected]
With you throughout all stages of your
built asset lifecycle
Northern Emirates Real Estate Report -
NORTHERN EMIRATES MARKET OVERVIEW
Apartment rental rates in the Northern Emirates continued to soften with average quarterly and annual declines of 5% and 13%, respectively. Further downward pressure on rates is expected as the delivery of new supply and resulting drop in rental rates in Dubai impedes the recovery of rates in the Northern Emirates in the short-term. Asteco’s research indicated the most notable decreases for typical apartment units in Ajman and Ras Al Khaimah (RAK) with drops of 9% and 7% during Q2 2019 due to the handover of new supply with better quality specifications/facilities at competitive rates within the Emirates and in neighbouring municipalities. Whilst Ajman Residents relocated to Sharjah and Dubai, Tenants in RAK opted for the local master plan communities of Mina Al Arab and Al Marjan Island. It is noteworthy to mention that there was a marked drop in typical apartment listings (for rent) in Fujairah, suggesting good occupancy rates in the Emirate. Sharjah office rental rates continued their downward trend with quarterly and annual declines of 3% and 9% on the back of low demand.
Similar to last quarter, average sales prices in Sharjah declined by 2% on average with more pronounced drops of up to 10% in stand-alone buildings in GCC freehold areas compared with properties in master planned communities offered on a leasehold basis to all nationalities. Following the 54,125 transactions worth AED 22.5 billion recorded in 2018, the Sharjah Real Estate Registration Directorate (SRERD) registered 27,588 transactions valued at AED 14.7 billion in H1 2019. The total included 1,893 sales transactions across the Emirate with the majority of the activity taking place in Muwaileh Commercial Area, followed by Al Khan and Al Nahda. At this rate, the Emirate is well on its way to surpass last year’s performance, particularly in regards to total value of transactions. The Northern Emirates saw the addition of a couple of retail developments with the opening of Oasis Mall in Sharjah (by Landmark Group) and Mall of UAQ in Umm Al Quwain (by Lulu). Furthermore, the new 89km Khorfakkan highway was inaugurated in April 2019. It links Emirates Road (E611) in Sharjah with Wadi Shi Square in Khorfakkan, thus providing ease of access to the growing tourist destination and reducing travel time between the two cities to 45 minutes. Similar to Dubai and Abu Dhabi, the local governments of the Northern Emirates are introducing larger budgets and more diversification strategies to stimulate the economy and boost investment, which is expected to translate into employment/business growth and hence increased transaction activity in the Real Estate market in the medium- to long-term.
3 Q2 2019
SHARJAHTYPICALHIGH END
AJMANTYPICALHIGH END
UMM AL QUWAIN
RAS AL KHAIMAHTYPICALHIGH END
FUJAIRAHTYPICALHIGH END
(All figures in AED 000's p.a.)
Since market low Q4 2012
Since peak Q1 2015
Y-o-YQ-o-Q% Change
STUDIO 1 BEDROOM 2 BEDROOMS 3 BEDROOMS % CHANGE
NORTHERN EMIRATES APARTMENT RENTAL RATES
FROM FROM FROMTO TO TOFROM TO
Northern Emirates Real Estate Report -
12
Q2 2019Q2 2018 -
Q2 2019Q1 2019 -
1618 2510 1415 2113 1712 1819 3014 20- -
13 2628 3813 2122 2817 2217 2627 4519 2628 42
20 3032 6414 2425 3824 2720 3638 5525 2932 52
30 4148 7024 3638 4228 3533 4463 7835 4552 70
-4% -11%-5% -11%-9% -22%-3% -13%-4% -7%-7% -17%-4% -13%-3% -13%-3% -12%
-5% -13% -29% -2%
Since Q1 2019 Since Q2 2018
4 Q2 2019
Since market low Q4 2011
Since peak Q1 2015
Y-o-YQ-o-Q% Change
STUDIO % CHANGE
SHARJAH APARTMENT RENTAL RATES
(All figures in AED 000's p.a.)
FROM
2 BEDROOMS
FROM
3 BEDROOMS
FROMTO TO TO
1 BEDROOM
FROM TO
AL MAJAZAL QASIMIAHAL NAHDAAL KHAN (AL MAMZAR)ABU SHAGARAAL BUTINAAL YARMOOKROLLAAL WAHDACORNICHE
Northern Emirates Real Estate Report -
Q1 2019 - Q2 2018 - Q2 2019 Q2 2019
15 20 20 38 24 60 32 70 -2% -9%13 19 15 29 20 38 30 52 -4% -9%16 23 18 36 20 51 37 65 -2% -9%16 22 19 38 25 64 35 70 -3% -10%13 20 17 31 21 38 33 46 -3% -12%12 16 13 24 20 27 31 45 -4% -10%13 16 16 22 20 27 30 42 -3% -8%12 17 17 24 22 30 36 42 -1% -8%14 23 22 28 24 40 32 52 -2% -10%16 25 24 38 25 58 37 70 -4% -10%
11%
Since Q2 2018
-10% -30%
Since Q1 2019
-3%
5 Q2 2019
Q-o-Q% Change
SHARJAH APARTMENT SALES PRICES
Northern Emirates Real Estate Report -
Q-o-Q % ChangeAED per sq.ft. 0 100 200 300 400 500 600 700 800 900 1,000
AL KHAN (TYPICAL)
AL KHAN (HIGH END)
AL TAAWUN
AL NAHDA
AL MAJAZ (TYPICAL)
AL MAJAZ (HIGH END)
AL MAMSHA *
AL ZAHIA *
AL JAADA *
* Leasehold ownership (up to 100 years) for all nationalities
325 450
375 525
475 675
375 475
750 925
550 750
325 450
700 850
450 600
-3%
-8%
-5%
-2%
-4%
-0%
0%
-3%
-2%
0%
Since Q1 2019
6
(Q1 2019 - Q2 2019)
Q2 2019
SHARJAH OFFICE RENTAL RATES
AVERAGE RENTAL RATES % CHANGE
FROM TO
Y-o-YQ-o-Q% Change
(All figures in AED per sq.ft. p.a.)
AL TAAWUN ROADCORNICHE AREAAL WAHDAAL QASEMEHCLOCK R/AAL YARMOOKINDUSTRIAL AREA
Northern Emirates Real Estate Report -
284036303622 38
4450425640 -4%
-4%-2%-3%-1%-3% -9%
-4%-10%-6%
-11%-13%
Q1 2019 - Q2 2019 Q2 2018 - Q2 2019
24 43 -3% -8%
Since Q2 2018
-9%
Since Q1 2019
-3%
7 Q2 2019
NORTHERN EMIRATES MAP
Arabian Gulf
311
11
11
11
5
1
10
8
9
3
2
6
4
7
ABU DHABI
DUBAI
SHARJAH FUJAIRAH
RAS AL KHAIMAHUMM AL QUWAIN
AJMAN
SHARJAH
1 Abu Shagara2 Al Khan3 Al Majaz4 Al Nahda5 Al Qasimiyah6 Al Taawun7 Al Wahda8 Corniche / Buhaira9 Khaledia10 King Faisal and King Abdul Aziz Streets
Mina Al Arab
Marjan Island
1
2
Al Hamra
3
RAS AL KHAIMAH
1 Mina Al Arab2 Marjan Island3 Al Hamra
UNITED ARAB EMIRATES
Northern Emirates Real Estate Report - 8 Q2 2019
DISCLAIMER: The information contained in this report has been obtained from and is based upon sources that Asteco Property Management believes to be reliable; however, no warranty or representation, expressed or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. Asteco Property Management will not be held responsible for any third-party contributions. All opinions and estimates included in this report constitute Asteco Property Management’s judgment, as of the date of this report and are subject to change without notice. Figures contained in this report are derived from a basket of locations highlighted in this report and therefore represent a snapshot of the UAE market. Averages, however, represent a wider range of areas. Particularly exclusive or unique projects have been excluded from the data to avoid distorting averages. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from forecasts and any variation may be materially positive or negative. Forecasts, by their very nature, involve risk and uncertainty because they relate to future events and circumstances which are beyond Asteco Property Management’s control. For a full in-depth study of the market, please contact Asteco Property Management’s Research team. Asteco Property Management LLC. Commercial License No. 218551. Paid-up Capital AED 4,000,000. | ORN 180
About Asteco
The Middle East’s largest full service Real Estate Services Company, Asteco was formed in Dubai in 1985. Over the years, Asteco has gained enormous respect for consistently delivering high quality, professional, value-added services in a transparent manner. It is also widely recognised for its involvement with many of the projects that have defined the landscape and physical infrastructure of the Emirates.
Asteco has an essential combination of local knowledge and international expertise. A deeply established brand, renowned for its application of the latest technological advances, its commitment to transparency, winning strategies and human expertise. Undisputed Real Estate experts, Asteco represents a significant number of the region’s top property Owners, Developers and Investors.
VALUATION & ADVISORY Our professional advisory services are conducted by suitably qualified personnel all of whom have had extensive Real Estate experience within the Middle East and internationally.
Our valuations are carried out in accordance with the Royal Institution of Chartered Surveyors (RICS) and International Valuation Standards (IVS) and are undertaken by appropriately qualified valuers with extensive local experience.
The Professional Services Asteco conducts throughout the region include:
• Consultancy & Advisory services• Market research• Valuation services
SALES Asteco has established a large regional property Sales division with representatives based in the UAE, Qatar and Jordan. Our Sales teams have extensive experience in the negotiation and sale of a variety of assets.
LEASING Asteco has been instrumental in the Leasing of many high-profile developments across the GCC.
ASSET MANAGEMENT Asteco provides comprehensive Asset Management services to all property Owners, whether a single unit (IPM) or a regional mixed-use portfolio. Our focus is on maximising value for our Clients.
OWNERS ASSOCIATION Asteco has the experience, systems, procedures and manuals in place to provide streamlined comprehensive Association Management and Consultancy services to residential, commercial and mixed-use communities throughout the GCC Region.
BUILDING CONSULTANCY The Building Consultancy Team at Asteco have a wealth of experience supporting their Clients throughout all stages of the built asset lifecycle. Each of the team’s highly trained surveyors have an in-depth knowledge of construction technology, building pathology and effective project management methods which enable us to provide our clients with a comprehensive building consultancy service.
FRANCHISE Our brand, network, system and procedures are now available in territories across the MENA region. Our Licensing services currently include Real Estate Brokerage Franchising and associated support services with many of the key elements designed specifically around the Franchisee, making it a truly unique and bespoke franchise opportunity.
Elaine JonesFRICS
Executive Chairman and Founder / Director - Transactional Services+971 4 403 [email protected]
John Stevens MSc, BSc (Hons), MRICS
Managing Director/ Director - Asset Management+971 4 403 [email protected]
John Allen BSc, MRICS
Executive Director - Valuation & Advisory+971 4 403 [email protected]
James Joughin BSc (Hons), MRICS
Senior Associate Director - Head of Valuations +971 4 403 [email protected]
Jenny Weidling BA (Hons)
Manager - Research and Advisory, Dubai+971 4 403 [email protected]
Ghada Amhaz MSc
Manager - Research and Advisory, Abu Dhabi+971 2 626 [email protected]
Tamer Ibrahim Chaaban BE
Associate Director / General Manager - Al Ain+971 3 766 [email protected]
astrep876/20190707