Download - DUBAI RePORT - Q4 2013 - Asteco Property Management · 2016. 5. 29. · DUBAI RePORT - Q4 2013 • ... • In Q4 2013, we witnessed owner-occupiers and investors keen to enter the

In the mIddle east for 29 yearsDUBAI | ABU DHABI | AL AIN | SHARJAH | QATAR | JORDAN

© Asteco Property Management, 2014 asteco.com | astecoreports.com For additional information: 600 54 7773

DUBAI RePORT - Q4 2013•

•SalespricesincreasedsubstantiallyinQ42013comparedwiththepreviousquarterby23%,onaverage;andcloseto60%comparedwiththesameperiodlastyear.

• Astecoanticipatesthat2014willseeacontinuationofthetrendwitnessedinthepreviousyearwithsalespricesincreasing,albeitataslowerpaceasapproximately25,000residentialunitsareforecastedforcompletionthisyearandfurtherprojectsareexpectedtobelaunched.

• ResidentialleasingratesinDubaiwitnessedsignificantgrowthratesforapartments,onaverage,by22%sincethepreviousquarter;andcloseto50%comparedwiththelastquarterin2012.

• Villarentalrateshavealsogrown,althoughataslightlyslowerrateof6%comparedwiththepreviousquarter;andup20%comparedwiththesameperiodlastyear.

• Theresidentialleasingmarketisexpectedtoremainstrongforallproducttypesin2014duetostrongmarketsentimentswitnessedbythebusinesscommunityfollowingtheExpo2020win.Therentalrateincrease,however,seenin2013willnotbeasaggressivethisyearduetoasubstantialamountofnewsupplyenteringthemarket.

• Astecoisoftheopinionthatofficerentalrateshaveoverallbottomedoutandweexpecttoseesomegrowthovertheshorttomediumterm,particularlyforsingleownedandmanagedbuildingswheresupplyislimited.

ASSeT MANAGeMeNT SALeS LeASING

VALUATION & ADVISORY SALeS MANAGeMeNT OWNeR ASSOCIATION




Q3 2013 Q4 2013 Percentage Change (Q4 2012-Q4 2013) Percentage Change (Q3-Q4 2013)

AED/

ft2

17%

39%

18%

83%

29%

69%

36%

81%

17%

47%

17%

53%

26%

60%

21%

43%

1,60

0

700

1,70

0

1,40

0

1,20

0

1,30

0

950

1,65

0

1,87

5

825

2,20

0

1,90

0

1,40

0

1,52

5

1,20

0

2,00

0

0

500

1,000

1,500

2,000

2,500

DIFC DiscoveryGardens

DowntownDubai

Dubai Marina Greens Jumeirah BeachResidence

Jumeirah LakesTowers

Palm Jumeirah


AED/

ft2

11%

29%

13%

25%

12%

27%

10%

24%

13%

55%

13%

30%

50%

67%

10%

22%


AED/

ft2

22%

39%

0%

6%

17%

-5%

40%

40%

32%

68%

3%

10%

1,10

0

1,00

0

850

1,30

0

750

1,15

0

2,00

0

1,00

0

1,22

5

1,12

5

950

1,42

5

850

1,30

0

3,00

0

1,10

0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Arabian Ranches Dubai Sports City(Victory Heights)

Green Community Jumeirah Islands Jumeirah Village Meadows Palm Jumeirah Springs

800

1,80

0

450

500

700

800

975

1,80

0

525

700

925

825

0

500

1,000

1,500

2,000

Business Bay DIFC Dubai Investment Park Dubai Silicon Oasis Jumeirah Lakes Towers Tecom C


AED/

ft2

17%

39%

18%

83%

29%

69%

36%

81%

17%

47%

17%

53%

26%

60%

21%

43%

1,60

0

700

1,70

0

1,40

0

1,20

0

1,30

0

950

1,65

0

1,87

5

825

2,20

0

1,90

0

1,40

0

1,52

5

1,20

0

2,00

0

0

500

1,000

1,500

2,000

2,500


DowntownDubai



Palm Jumeirah


AED/

ft2

11%

29%

13%

25%

12%

27%

10%

24%

13%

55%

13%

30%

50%

67%

10%

22%


AED/

ft2

22%

39%

0%

6%

17%

-5%

40%

40%

32%

68%

3%

10% 1,

100

1,00

0

850

1,30

0

750

1,15

0

2,00

0

1,00

0

1,22

5

1,12

5

950

1,42

5

850

1,30

0

3,00

0

1,10

0

0

500

1,000

1,500

2,000

2,500

3,000

3,500



800

1,80

0

450

500

700

800

975

1,80

0

525

700

925

825

0

500

1,000

1,500

2,000



AED/

ft2

17%

39%

18%

83%

29%

69%

36%

81%

17%

47%

17%

53%

26%

60%

21%

43%

1,60

0

700

1,70

0

1,40

0

1,20

0

1,30

0

950

1,65

0

1,87

5

825

2,20

0

1,90

0

1,40

0

1,52

5

1,20

0

2,00

0

0

500

1,000

1,500

2,000

2,500


DowntownDubai



Palm Jumeirah


AED/

ft2

11%

29%

13%

25%

12%

27%

10%

24%

13%

55%

13%

30%

50%

67%

10%

22%


AED/

ft2

22%

39%

0%

6%

17%

-5%

40%

40%

32%

68%

3%

10%

1,10

0

1,00

0

850

1,30

0

750

1,15

0

2,00

0

1,00

0

1,22

5

1,12

5

950

1,42

5

850

1,30

0

3,00

0

1,10

0

0

500

1,000

1,500

2,000

2,500

3,000

3,500



800

1,80

0

450

500

700

800

975

1,80

0

525

700

925

825

0

500

1,000

1,500

2,000


DUBAI SALeS

• SalespricesincreasedsubstantiallyinQ42013comparedwiththepreviousquarterby23%,onaverage;andcloseto60%comparedwiththesameperiodlastyear.

• Despitethesesteepgrowthrates,salespricesremain,onaverage,21%lowerthanattheirpeakin2008.

•Whilstthemajorityofbuyersarecashbuyers,thelastquarterof2013sawanincreaseofendusersandmortgagebuyerstakingadvantageofthefactthatthenewlawregulatingmaximumLTV’sisnotconsistentlyenforced.

• InQ42013,wewitnessedowner-occupiersandinvestorskeentoenterthemarketasrentalrateswereonanupwardtrend,whichindicatedbetterreturnsandpotentialforcapitalappreciationinthemediumterm.

• Intermsofmajortrends,wehaveseensubstantialincreasesofpropertypricesforbothapartmentsandvillaslocatedwithintheSheikhMohammedBinZayedRoad(formerlyEmiratesRoad)belt.Thisstretchofroadhasseenvastimprovementsintermsofaccessibilityandfacilitiesofferedinthedifferentcommunities.

•Withstrongpositivesentimentswitnessedthroughouttheyear,andspecificallyduringthelastquarterafterDubaiwinningExpo2020,severalnewdevelopmentswerelaunchedandwellreceivedbythepublicsuchasCasabyEmaaratArabianRanches,VidaResidencesandFountainViewsatDowntownDubai.

• Astecoanticipates2014willseeacontinuationofthetrendwitnessedinthepreviousyearwithsalespricesincreasing,albeitataslowerpace,asapproximately25,000residentialunitsareforecastedforcompletionthisyearandfurtherprojectsareexpectedtobelaunched.

• Therehasbeenanincreaseinactivityintheofficestratamarket,particularlyforpropertiesinBusinessBay,whichhasenjoyedsignificantgrowthinsalesratesduetolowsalespricesduringtheeconomicdownturn.TheBusinessBayareahasgrownasnewprojectshavecompletedandtheareaisbecomingamoreestablishedcommercialdistrict.

•Withstillsignificantamountsofsupplyofsmalltomediumsizedofficeunitsavailable,Astecoanticipatescontinuedsalesrategrowth,albeitataslowerratethanresidentialsales.

Dubai ResiDential sales

Dubai Office sales Office sales PRices anD PeRcentage change

Villa sales PRices anD PeRcentage change

aPaRtment sales PRices anD PeRcentage change




DUBAI LeASING

• ResidentialleasingratesinDubaiwitnessedsignificantgrowthratesforapartments,onaverage,by22%sincethepreviousquarter;andcloseto50%comparedwiththelastquarterin2012.

• Rentalgrowthwasdrivenbyasteadyinfluxofpeopletothecity,partiallyduetothecontinuedunrestintheregion.Furthermore,DubaiwinningExpo2020hasledtoadditionalrequirementsforstaffaccommodationintheF&B,leisureandconstructionindustriesasanumberofcompaniesseethepotentialofexpandingtheirMiddleEastoperations.

• Overall,master-plannedcommunitieshavebecomemoreattractive,eveninpreviouslylessdesirableareas,asroadnetworkshaveimprovedandmorecommunitycentresandfacilities(suchasparks,retail,healthclubs,schools,etc.)areavailable.

• Villarentalrateshavealsoincreased,althoughataslightlyslowerrateof6%comparedwiththepreviousquarter;andup20%comparedwiththesameperiodlastyear.

• Largermaster-plannedcommunitieshaveperformedespeciallywellascommunitylivingcontinuestobepopular,evenforsmallerfamilieswhopreferthesecurity,facilitiesandproximityofalargercompoundcomparedtoastandalonevilla.

• NewreleasesinareassuchasAlFurjanandJumeirahParkhavebeenhugelypopularthisquarter,asroadconnectivitytoIbnBattutaMallandmajorroadshaveimproved.

• Theresidentialleasingmarketisexpectedtoremainstrongforallproducttypesin2014duetostrongmarketsentimentswitnessedbythebusinesscommunityfollowingtheExpo2020win.Therentalrateincrease,however,seenin2013willnotbeasaggressivethisyearduetoasubstantialamountofnewsupplyenteringthemarket.

• Officerentalrategrowthhasbeenrelativelyslow;however,significantimprovementswerewitnessedintermsofthenumberofenquiriesandsizerequirements.

•Whilstpreviousdemandwasforsmallerofficespaceofupto5,000sqft,requirementsarenowforlargerareasofupto10,000sqftorentirefloors.ThiswouldindicatetheexpansionofsmallandmediumsizedcompaniesinDubaiaswellasnewentrantstothemarket.

•Mostnewcompaniesarekeentosignlongerleasesofthreetofiveyearsastheyanticipatesubstantialrentalgrowthinthemediumtermandseektooffsettheirinitialcapitalcostofinvestment.

• Astecoisoftheopinionthatofficerentalrateshaveoverallbottomedoutandweexpecttoseesomegrowthovertheshorttomediumterm,particularlyforsingleownedandmanagedbuildingswheresupplyislimited.

aPaRtment Rental Rates anD PeRcentage change Dubai ResiDential leasing

Dubai Office leasing

Villa Rental Rates anD PeRcentage change

Office Rental Rates anD PeRcentage change

Average Rental Rates (AED’000/pa) % Change

DEvElopmEntStudio 1 BR 2 BR 3 BR Q3-Q4

2013 Q4 2012-Q4 2013min max min max min max min max

Discovery Gardens 40 55 65 75 80 85 - - 26 44

Downtown Dubai 65 80 85 110 140 180 190 265 10 22

Dubai marina 55 75 90 120 100 180 120 235 21 37

International City 30 35 40 45 60 70 - - 34 76

Jumeirah Beach Residence 75 80 90 125 120 150 160 190 20 31

Jumeirah lakes towers 60 65 70 95 95 125 120 175 26 50

palm Jumeirah - - 120 150 150 200 180 265 14 28

Sheikh Zayed Road 70 80 85 110 125 170 140 250 18 30

Average Rental Rates (AED’000/pa) % Change

DEvElopmEnt2 BR 3 BR 4 BR 5 BR Q3-Q4

2013 Q4 2012-Q4 2013min max min max min max min max

Arabian Ranches 140 175 175 250 210 360 280 450 18 30

Green Community - - 210 250 210 260 220 300 2 10

Jumeirah 120 160 155 235 175 300 220 400 11 28

Jumeirah Islands - - - - 290 370 330 420 0 9

meadows - - 220 260 240 300 260 320 0 15

mirdif - - 100 175 130 200 150 200 10 40

palm Jumeirah n/a n/a 300 400 440 550 445 1,000 11 25

Springs 110 130 145 180 - - - - 1 21

Average Rental Rates (AED/ft2/pa) % Change

DEvElopmEnt min max Q3-Q4 2013 Q4 2012-Q4 2013Bur Dubai 60 130 0 19

Business Bay 60 140 5 43

DIFC 140 300 0 0

Dubai Internet City 130 180 0 35

Dubai Investment park 40 70 0 38

Jumeirah lakes towers 50 130 3 80

Sheikh Zayed Road 80 270 6 25

tecom C 50 120 10 55

With29yearsofMiddleeastexperience,Asteco’sValuation&AdvisoryServicesteambringstogetheragroupoftheGulf’sleadingrealestateexperts.

Asteco’snetworkofofficesinAbuDhabi,AlAin,Dubai,NorthernEmirates,QatarandJordannotonly

providesadeepunderstandingofthelocalmarketsbutalsoenablesustoundertakelargeinstructions

wherewecanquicklyapplyresourcestomeetclientsrequirements.

Ourbreadthofexperienceacrossallthemainpropertysectorsisunderpinnedbyoursales,leasingand

investmentteamstransactinginthemarketandawealthofresearchthatsupportsourdecisionmaking.

VALUATION & ADVISORY

OurprofessionaladvisoryservicesareconductedbysuitablyqualifiedpersonnelallofwhomhavehadextensiverealestateexperiencewithintheMiddleEastandinternationally.

OurvaluationsarecarriedoutinaccordancewiththeRoyalInstitutionofCharteredSurveyors(RICS)andInternationalValuationStandards(IVS)andareundertakenbyappropriatelyqualifiedvaluerswithextensivelocalexperience.

TheProfessionalServicesAstecoconductsthroughouttheregioninclude: • consultancy and advisory services •market Research •Valuation services

SALeS

AstecohasestablishedalargeregionalpropertysalesdivisionwithrepresentativesbasedintheUAE,QatarandJordan.Oursalesteamshaveextensiveexperienceinthenegotiationandsaleofavarietyofassets.

LeASING

Astecohasbeeninstrumentalintheleasingofmanyhigh-profiledevelopmentsacrosstheGCC.

ASSeT MANAGeMeNT

Astecoprovidescomprehensiveassetmanagementservicestoallpropertyowners,whetherasingleunit(IPM)oraregionalmixeduseportfolio.OurfocusisonmaximisingvalueforourClients.

OWNeR ASSOCIATION

Astecohastheexperience,systems,proceduresandmanualsinplacetoprovidestreamlinedcomprehensiveAssociationManagementandConsultancyServicestoresidential,commercialandmixedusecommunitiesthroughouttheGCCRegion.

SALeS MANAGeMeNT

OurSalesManagementservicesarecomprehensiveandencompasseverythingrequiredforthesuccessfulcompletionandhandoverofunitstoindividualunitowners.

Oman

united arab emiratesQatar

Jordan

Egypt

Yemen

Iran

RasAlKhaimah

united arab emirates

AjmanSharjah

Dubai

abu Dhabi

AlAin

Fujairah

UmAlQuwaim

DisclaimeR:TheinformationcontainedinthisreporthasbeenobtainedfromandisbaseduponsourcesthatAstecoPropertyManagementbelievestobereliable,however,nowarrantyorrepresentation,expressedorimplied,ismadetotheaccuracyorcompletenessoftheinformationcontainedherein,andsameissubmittedsubjecttoerrors,omissions,changeofprice,rentalorotherconditions,withdrawalwithoutnotice,andtoanyspeciallistingconditionsimposedbyourprincipals.AstecoPropertyManagementwillnotbeheldresponsibleforanythird-partycontributions.AllopinionsandestimatesincludedinthisreportconstituteAstecoPropertyManagement’sjudgment,asofthedateofthisreportandaresubjecttochangewithoutnotice.FigurescontainedinthisreportarederivedfromabasketoflocationshighlightedinthisreportandthereforerepresentasnapshotoftheDubaimarket.Duecareandattentionhasbeenusedinthepreparationofforecastinformation.However,actualresultsmayvaryfromforecastsandanyvariationmaybemateriallypositiveornegative.Forecasts,bytheirverynature,involveriskanduncertaintybecausetheyrelatetofutureeventsandcircumstanceswhicharebeyondAstecoPropertyManagement’scontrol.Forafullin-depthstudyofthemarket,pleasecontactAstecoPropertyManagement’sresearchteam.AstecoPropertyManagementLLC.CommercialLicenceNo.218551.Paid-upCapitalAED4,000,000.

In the mIddle east for 29 years



DUBAI | ABU DHABI | AL AIN | SHARJAH | QATAR | JORDAN


John Allen BSc MRICS

Jeremy oates BSc FRICS

Julia Knibbs MSc

Ria Goculdas MBA

Director, valuation & Advisory

General manager, Abu Dhabi

Research & Consultancy manager, UAE

Research & Consultancy manager, Abu Dhabi

+971 600 54 7773 +971 2 626 2660 +971 600 54 7773 +971 2 626 2660

[email protected] [email protected] [email protected] [email protected]

John Stevens BSc MRICS

Sean mcCauley MBA BCom

vineet Kumar BCom (Hons)

James Joughin BSc (Hons) MRICS

managing Director/Director, Asset Services

Director, Agency

Associate Director,Agency

Head of valuations, Abu Dhabi

+971 600 54 7773 +971 600 54 7773 +971 600 54 7773 +971 2 626 2660


With29yearsofMiddleeastexperience,Asteco’sValuation&AdvisoryServicesteambringstogetheragroupoftheGulf’sleadingrealestateexperts.

Asteco’snetworkofofficesinAbuDhabi,AlAin,Dubai,NorthernEmirates,QatarandJordannotonly

providesadeepunderstandingofthelocalmarketsbutalsoenablesustoundertakelargeinstructions

wherewecanquicklyapplyresourcestomeetclientsrequirements.

Ourbreadthofexperienceacrossallthemainpropertysectorsisunderpinnedbyoursales,leasingand

investmentteamstransactinginthemarketandawealthofresearchthatsupportsourdecisionmaking.

VALUATION & ADVISORY

OurprofessionaladvisoryservicesareconductedbysuitablyqualifiedpersonnelallofwhomhavehadextensiverealestateexperiencewithintheMiddleEastandinternationally.

OurvaluationsarecarriedoutinaccordancewiththeRoyalInstitutionofCharteredSurveyors(RICS)andInternationalValuationStandards(IVS)andareundertakenbyappropriatelyqualifiedvaluerswithextensivelocalexperience.

TheProfessionalServicesAstecoconductsthroughouttheregioninclude: • consultancy and advisory services •market Research •Valuation services

SALeS

AstecohasestablishedalargeregionalpropertysalesdivisionwithrepresentativesbasedintheUAE,QatarandJordan.Oursalesteamshaveextensiveexperienceinthenegotiationandsaleofavarietyofassets.

LeASING

Astecohasbeeninstrumentalintheleasingofmanyhigh-profiledevelopmentsacrosstheGCC.

ASSeT MANAGeMeNT

Astecoprovidescomprehensiveassetmanagementservicestoallpropertyowners,whetherasingleunit(IPM)oraregionalmixeduseportfolio.OurfocusisonmaximisingvalueforourClients.

OWNeR ASSOCIATION

Astecohastheexperience,systems,proceduresandmanualsinplacetoprovidestreamlinedcomprehensiveAssociationManagementandConsultancyServicestoresidential,commercialandmixedusecommunitiesthroughouttheGCCRegion.

SALeS MANAGeMeNT

OurSalesManagementservicesarecomprehensiveandencompasseverythingrequiredforthesuccessfulcompletionandhandoverofunitstoindividualunitowners.

Oman

united arab emiratesQatar

Jordan

Egypt

Yemen

Iran

RasAlKhaimah

united arab emirates

AjmanSharjah

Dubai

abu Dhabi

AlAin

Fujairah

UmAlQuwaim

DisclaimeR:TheinformationcontainedinthisreporthasbeenobtainedfromandisbaseduponsourcesthatAstecoPropertyManagementbelievestobereliable,however,nowarrantyorrepresentation,expressedorimplied,ismadetotheaccuracyorcompletenessoftheinformationcontainedherein,andsameissubmittedsubjecttoerrors,omissions,changeofprice,rentalorotherconditions,withdrawalwithoutnotice,andtoanyspeciallistingconditionsimposedbyourprincipals.AstecoPropertyManagementwillnotbeheldresponsibleforanythird-partycontributions.AllopinionsandestimatesincludedinthisreportconstituteAstecoPropertyManagement’sjudgment,asofthedateofthisreportandaresubjecttochangewithoutnotice.FigurescontainedinthisreportarederivedfromabasketoflocationshighlightedinthisreportandthereforerepresentasnapshotoftheDubaimarket.Duecareandattentionhasbeenusedinthepreparationofforecastinformation.However,actualresultsmayvaryfromforecastsandanyvariationmaybemateriallypositiveornegative.Forecasts,bytheirverynature,involveriskanduncertaintybecausetheyrelatetofutureeventsandcircumstanceswhicharebeyondAstecoPropertyManagement’scontrol.Forafullin-depthstudyofthemarket,pleasecontactAstecoPropertyManagement’sresearchteam.AstecoPropertyManagementLLC.CommercialLicenceNo.218551.Paid-upCapitalAED4,000,000.

In the mIddle east for 29 years



DUBAI | ABU DHABI | AL AIN | SHARJAH | QATAR | JORDAN


John Allen BSc MRICS

Jeremy oates BSc FRICS

Julia Knibbs MSc

Ria Goculdas MBA

Director, valuation & Advisory

General manager, Abu Dhabi

Research & Consultancy manager, UAE

Research & Consultancy manager, Abu Dhabi

+971 600 54 7773 +971 2 626 2660 +971 600 54 7773 +971 2 626 2660


John Stevens BSc MRICS

Sean mcCauley MBA BCom

vineet Kumar BCom (Hons)

James Joughin BSc (Hons) MRICS

managing Director/Director, Asset Services

Director, Agency

Associate Director,Agency

Head of valuations, Abu Dhabi

+971 600 54 7773 +971 600 54 7773 +971 600 54 7773 +971 2 626 2660
