dubai review-outlook 2018-2019 - valustrat · economy, uae government announced 10-year visa for...
TRANSCRIPT
REV
IEW
OU
TLO
OK
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