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OU

TLO

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Dubai

www.valustrat.com

-0.3%

OCCUPANCY

-2.1%

AVERAGE DAILY RATE

-3.0%

OCCUPANCY

-7.9%

AVERAGE DAILY RATE

-1.2%

OCCUPANCY*

-4.4%

AVERAGE DAILY RATE*

* Estimated

-0.5%

OCCUPANCY*

-2.3%

AVERAGE DAILY RATE*

* Estimated

-4.9%

RENTSALE

-8.2%87-0.7%

RENT

+0.7%

SALE

93

TRANSACTIONS

• There were 3,649 off-plan transactions and 2,468 ready home sales worth a total of AED 8.6 billion

SALES

• Lebanon Island at The Word Islands Dubai was put on sale for AED 80 million

TOURISM

• 4.65 million total international guests by the end of March 2018

• Dubai Frame officially opened to the public

• Transit tourist visa announced

HOTEL

• World’s tallest hotel, Gevora Hotel towering at 356 metres, was opened along Sheikh Zayed Road

INFRASTRUCTURE

• RTA opened Rashidiya bridge at Airport Street and Airport – Casablanca Street bridge

• 220 free parking spaces allocated to electric cars announced by RTA

• New highway linking Dubai – Al Ain Road and Al Yalayis Road was opened

• Al Khail and Financial Centre Roads link bridge was opened

• AED 30.1 million Hatta Road project approved

• DLD completed phase one of building classification project

• Two new bridges at Sheikh Rashid – Sheikh Khalifa Bin Zayed Streets intersection were opened

• Route 2020 financing completed

• Dubai Municipality announced to impose waste disposal fee

OFFICE

• Two predominantly office towers, The Exchange DIFC and The Opus Business Bay, completed construction

• DAFZA announced 25% increase in office tenancies

LAUNCHES

• Emaar Beachfront, (JV with Aldar Properties), Saffron at Emaar South and The Grand at Dubai Creek Harbour

• DAMAC’s Reva Residences in Business Bay

• La Quinta Villanova in Dubailand by Dubai Properties

RETAIL

• Dubai Chamber of Commerce and Industry (DCCI) formed a retail business group with members coming mostly from major retail business conglomerates

• Dubai Mall Fashion Avenue expansion opened

TRANSPORTATION

• Dubai’s Emirates ordered 36 Airbus A380 aircraft worth AED 58.7 billion

• Value Added Tax (VAT) capped at 5% officially took effect

• Sheikh Hamdan announced a freeze on all government fees for the next three years to help boost economic competitiveness and ease of doing business in the emirate

ECONOMY

-1.0%

RENTSALE

-13.2%83-1.7%

RENT

+0.4%

SALE

90

• Construction of HSBC headquarter office in Downtown Dubai reached completion stage

• Global co-working brand Our Space opened its flagship workspace in Lamborghini building along Sheikh Zayed Road

OFFICE

• Steep declines in capital values may have boosted sales, as transaction volumes increased across the board, with off-plan sales up 10.9% YoY and 18.7% QoQ, while properties in the secondary market rallied upwards, 1.5% YoY and 10.2% QoQ

MARKET SENTIMENT

• Dubai announced to form the world’s first stock market for free zone companies

• Dubai Executive Council announced reduced fees in education, aviation and real estate sectors to help boost the emirate’s economy

• Foreign Direct Investment (FDI) into Dubai rose 26% YoY in H1 2018 to AED 17.7 billion - according to Dubai Investment Development Agency

ECONOMY

TRANSACTIONS

• 18,191 property sales transactions worth AED 40 billion were recorded

INDUSTRIAL

• Dubai Industrial Park secured a AED 60 million investment

• Majid Al Futtaim opened its largest FMCG logistics centre at National Industries Park

RETAIL

• DCCI announced to create retail rent index

• Noon.com formed a strategic partnership with eBay

• The Springs Souk opened

TOURISM

• Russian tourists continued to pour into the city at 77% growth rate

• Federal Tax Authority approved VAT refund scheme for tourists

• Dubai Parks and Resorts witnessed 46% increase in number of visitors

• Dubai Safari closed to undergo upgrades

HOTEL

• The Address Downtown re-opened

• Two Caesars Palace hotels announced for Bluewater Island

• Queen Elizabeth 2 opened as a floating hotel

INFRASTRUCTURE

• Three new bridges which were part of Airport Street improvement project were opened

• RTA opened a four-lane tunnel along Sheikh Rashid Street

• Phase 2 of Seh Al Salam carriageway opened

• Shindagha Bridge project launched

• RTA opened phase 2 of road project improvements in Business Bay

TRANSPORTATION

• Dubai Statistics Centre estimated 700,000 daily commuters using Dubai’s mass transport and roads

RESIDENTIAL

• Meraas started to handover Nikki Beach Residences

• 11 new off plan projects launched

• Paid parking started in Al Khail Gate community

LEGAL

• A proposal for a new mortgage law was announced by DLD

• Dubai Economic Department (DED) to exempt on-shore companies from penalties resulting from late license renewal under a new decree

• DLD announced to digitise all real estate transactions under a new platform to be called Real Estate Self Transaction (REST)

CITYSCAPE

• This year’s edition saw less off plan projects launches, increased interest for ready units

• Notable off plan launches include Marsa Meydan by Meydan Group and Dubai Holdings, Madinat Jumeirah Living

ValuStrat Price Index – VPI Dubai Residential Base: January 2014=100

ValuStrat Price Index – VPI Dubai Office Base: January 2015=100

All prices are quoted in UAE Dirhams unless otherwise stated

Sales and Rent performance are measured on a quarterly basis while hotel performance are on yearly basis

HOTEL

• Upcoming hotels: Premier Inn Dragon City, ME by Melia hotel, Vida Harbour Point, The Resort Jebel Ali Beach, Taj Hotel Palm Jumeirah, DAMAC Towers by Paramount and Lemon Tree Hotel, to name a few

OUTLOOK

• UAE GDP to expand 3.8% as various economic stimulus may start to impact the country’s vital sectors

• Long term visa initiatives may benefit overall economy, particularly the real estate sector

• Capital values and rents soften at a slower rate. Increasingly affordable rents, particularly for townhouses and small villas. More competitive options for investors

• Rentals and capital values for prime office space located in DIFC and Downtown Dubai to remain stable. Secondary locations to soften further

TOURISM

• Upcoming attractions: Dubai Arena, Mohammed Bin Rashid Library, Ain Dubai

• Asian Cup likely to draw football fans from across the region

INFRASTRUCTURE

• Phase 2 of Latifa bint Hamdan Street and Umm Al Sheef Street project

RETAIL

• Upcoming malls: Festival Plaza, Dubai Hills Mall

• Major construction works to be completed by October

• About 40,000 workers by the second half

• Route 2020 to be operational but not yet open for public

• IMF expects the city’s GDP to accelerate by 4.1% in 2019

• Further US Federal Reserve rate hikes are expected

ECONOMY

RESIDENTIAL600,000 units

OFFICE9.5 million sq m GLA

HOTEL138,000 keys

POPULATION ‘193,400,000 people

• S&P lowered ratings of two government linked companies, Dubai Electric and Water Authority (DEWA) and DIFC Investments (DIFCI)

• UAE Central Bank raised interest rates for the third time this year in line with US Fed decision

ECONOMY

TOURISM

• Meraas unveiled Hatta Eco-Tourism projects

INDUSTRIAL

• Wockhardt opened an AED 147 million manufacturing facility in Jebel Ali Free Zone

• Sika opened a new multi-million dirham production facility in Dubai Industrial Park

RETAIL

• Phase 2 of Souq Extra in Dubai Silicon Oasis began construction

• Nakheel opened Pavilion at Badrah

• Emaar revealed Dubai Square Mall as part of Dubai Creek Harbour project

LEGAL

• New rental law focused on landlord-tenant relationship was drafted

TRANSPORTATION

• Phase 3 of dedicated bus and taxi lanes were opened by RTA

• Tunnelling works for Dubai Metro extension 100% completed

• JLT metro station renamed as DMCC

TRANSACTIONS

• Established areas that witnessed substantial off-plan sale transactions included Downtown Dubai at 85% of sales being off-plan, Business Bay at 84% and Remraam 75%

SALES

• DLD announced AED 56.6 billion worth of property sales during the first nine months of 2018

HOTEL

• Hilton took over operations of three hotels in Al Habtoor City

• Over a thousand hotel rooms added with the opening of four hotels including the debut Hamptons by Hilton in Dubai Airport

• Marriott Aloft Dubai South opened

INFRASTRUCTURE

• RTA awarded contract to upgrade Al Qudra – Jebel Ali Lehbab Roads junction

• Two-lane tunnel in Airport Street and Marrakech Street opened

• New Salik gate was set up in Sheikh Zayed Road after passing Ibn Battuta Mall heading towards Abu Dhabi

RESIDENTIAL

• Developer of Bulgari Residences in Jumeirah Bay started to handover units

• Danube's Lawnz Project sold out

• Summer holidays and Eid break may have slowed residential property sales this quarter, as transaction volumes saw considerable declines

MARKET SENTIMENT

• With the aim of boosting the economy, UAE government announced 10-year visa for investors and certain professionals as well as 100% foreign ownership of non-free zone establishments

• 5-year renewable residency visa announced for expat retirees. Subject to either AED 2m property, AED 1m savings or AED 20,000 income.

GOVERNMENT

-7.2%

RENTSALE

+2.9%81-5.1%

RENT

-7.2%

SALE

87

• Dubai's resident population crosses 3.1 million, while active daytime population reaches almost 4.3 million

• Department of Economic Development (DED) issues 13,825 new licences in the first 9 months of 2018

• For the fourth time, US Fed Reserve increased interest rates by a quarter point with UAE Central Bank following suit. As a result, borrowing costs increased

ECONOMY

TRANSACTIONS

• More home buyers, particularly end-users shift focus on ready to move-in properties resulting in a 50% share of overall home sales

• Germany island on The Heart of Europe with 32 villas, sold out

HOTEL

• Jumeirah Beach Hotel re-opened after five months of restoration works

• Oakwood inked a deal to manage and operate Falconcity of Wonders hotel projects

• Caesars Palace Bluewaters welcomed its first guests

• Emerald Palace Kempinski and W Hotel opened in Palm Jumeirah

INFRASTRUCTURE

• RTA opened multi deck traffic corridors along Sheikh Zayed Road

• AED 590 million smart traffic infrastructure project approved • Dubai Tram transported more than 20 million riders in four years

TOURISM

• His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai launched the Jumeirah Project

• Dubai Safari re-opened with more animals and attractions

• Bluewaters Island opens to public

RETAIL

• Union Properties announced a 1 million sq ft shopping centre, One Avenue Mall in Motor City

• Carrefour launched its first sail through supermarket for Kite Beach, Jumeriah Public Beach and Al Sufouh Beach

• Nike to open a 30,000 sq ft megastore in Dubai Mall

• Givenchy opened a large boutique in Dubai Mall

• Tesla opened their first retail store in The Mall of the Emirates

LEGAL

• Low-cost hiring insurance law took effect

• UAE Central Bank issued a law to lift the 20% cap on real estate lending as part of the total deposits of banks

• Anti-money laundering law approved by Federal government

-4.0%

RENT*SALE*

+1.0%80* Estimated

-3.0%

RENT*

-6.5%

SALE*

85* Estimated

VPIValuStrat Price Index