REIDIN United Arab Emirates Residential Property Price ......14 18 22 Methodology and Coverage 25...

REIDIN United Arab Emirates Residential Property Price Indices: May 2017 Results

- Edition:102

June 21, 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 May 2017 Results

The Dubai Residential

Property Sales Price Index for

all residential increased by 0.6

points, from 258.4 to 259.0,

which represents an increase

of 0.25% in May 2017. On the

other hand, prices decreased

0.43% y-o-y.

Apartment sales prices

registered an increase in May

2017. Prices increased 0.18%

m-o-m but decreased 0.35%

y-o-y.

Villa sales prices registered an

increase in May 2017. Prices

increased 0.53% m-o-m but

decreased 0.76% y-o-y.

Dubai Residential Property Price IndicesSales Price Indices

3


Apartment

300

250

200

100

0

100.0

234.6 234.3 234.8

Villa

400

300

200

100

0

100.0

441.0 443.0 445.3

All Residential

300

270

200

100

0

100.0

258.4 258.4 259.0

2003 Jan 2017 Mar 2017 May2017 Apr

M-o-M:

0.25% M-o-M:

0.18% M-o-M:

0.53%

4(January 2003 = 100)

2003 Jan 2017 Mar 2017 May2017 Apr2003 Jan 2017 Mar 2017 May2017 Apr


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

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

Sales Price Indices

M-o-M

0.25% M-o-M

0.18% M-o-M

0.53%

5

0.25%

-0.14% -0.56% -0.43%

-5.75%

0.18%

-0.38% -0.64% -0.35%

-5.49%

0.53% 0.85%

-0.21%-0.76%

-6.76%

-0

-2

-4

-6

-8

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

September 2016 260.4 -0.06% 236.1 -0.09% 446.6 0.07%

October 2016 260.5 0.04% 236.3 0.07% 446.4 -0.06%

November 2016 260.5 -0.01% 236.3 0.00% 446.3 -0.02%

December 2016 259.9 -0.21% 235.7 -0.25% 446.1 -0.04%

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 258.40 -0.37% 234.6 -0.44% 441.0 -0.12%

April 2017 258.36 -0.02% 234.3 -0.13% 443.0 0.44%

May 2017 259.0 0.25% 234.8 0.18% 445.3 0.53%

6

The Dubai Residential

Property Rental Price Index for

all residential decreased by 0.2


which represents a decrease



4.57%

y-o-y.

Apartment rental prices

registered a decrease in May

2017. Prices decreased 0.30%

m-o-m and also decreased

4.22% y-o-y.

Villa rental prices registered

an increase in May 2017.

Prices increased 0.32% m-o-m

but decreased 6.50% y-o-y.

Dubai Residential Property Price IndicesRental Price Indices

7


Apartment

110

105

100

95

0

100.0

93.4 93.0 92.7

Villa

130

120

110

100

0

100.0

106.0 105.7 106.0

All Residential

120

110

100

90

0

100.0

95.1 94.7 94.5

8(January 2009 = 100)

M-o-M:

-0.21% M-o-M:

-0.30% M-o-M:

0.32% 2009 Jan 2017 Mar 2017 May2017 Apr



Rental Price Indices

-0

-4

-8

-12.5

-15



M-o-M

-0.21% M-o-M

-0.30% M-o-M

0.32%

9

-0.21% -0.25%-1.35%

-4.57%

-7.99%

-0.30% -0.26%-1.39%

-4.22%

-7.14%

0.32%

-0.25%-1.13%

-6.50%

-12.50%

Dubai Residential Property Price IndicesRental Price Indices and Monthly Changes


Month

(Jan.2009=100)

Index

NumberM-o-M

Index

NumberM-o-M

Index

NumberM-o-M

September 2016 97.3 -0.97% 95.3 -0.95% 110.1 -1.04%

October 2016 96.5 -0.79% 94.6 -0.75% 108.9 -1.08%

November 2016 95.8 -0.70% 94.0 -0.54% 107.2 -1.57%

December 2016 95.8 -0.04% 94.0 -0.02% 107.1 -0.15%

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%

10

Dubai Gross Rental Yields (%)

Apartment

7,5

0

Villa

5

0

All Residential

7,2

7,1

0

2017 Apr2017 Mar

5.5% 5.5% 5.5%

7.1%

7.5%

5.5%

7.6% 7.6%

7.5%

7.2% 7.2%

7.1%

11

2017 May

2017 Apr2017 Mar 2017 May 2017 Apr2017 Mar 2017 May

7,6

Dubai Price-to-Rent Ratios

Apartment

13.6

0

Villa

18

0

All Residential

14,4

0

18.6

18.8 18.8

14.5

13.7

18.8

13.6

13.7 13.7

14.4 14.4

14.5

12

14,5

13.7

2017 Apr2017 Mar 2017 May


Dubai Residential Property Price Indices & Financial Indicators

358.1 349.7

169.2 162.2

258.4 259.0

320

250

170

80

0

Oil Price Index Dubai Residential Property Price Index Gold Price Index

(January 2003 = 100)

2017 Apr 2017 May

M-o-M

-2.35%M-o-M

-4.17%M-o-M

0.25%

Dubai Residential Property Price Indices & Financial Indicators

13

The Abu Dhabi Residential

Property Sales Price Index for

all residential increased by 0.4





5.93% y-o-y.

Apartment sales prices




y-o-y.

Villa sales prices registered an

increase in May 2017. Prices

increased 0.45% m-o-m but

decreased 6.16% y-o-y.

Abu Dhabi Residential Property Price Indices: Sales Price Indices

14

Apartment

100

0

Villa

100

0

100.0

97.597.0

97.5

All Residential

100

0

100.0

97.396.8

97.2

Abu Dhabi Residential Property Price IndicesSales Price Indices

100.0

97.296.8

97.1

15(January 2014 = 100)

M-o-M:

0.41% M-o-M:

0.40% M-o-M:

0.45% 2014 Jan 2017 Mar 2017 May2017 Apr


Sales Price Indices

-0%

-3%

-5%

-9%

-12%



M-o-M

0.41% M-o-M

0.40% M-o-M

0.45%

Abu Dhabi Residential Property Price IndicesSales Price Indices

16

0.41%

-1.06%

-4.59%-5.93%

-7.23%

0.40%

-0.89%

-4.51%-5.86%

-6.47%

0.45%

-1.62%

-4.85%-6.16%

-9.65%

Abu Dhabi Residential Property Price IndicesSales Price Indices and Monthly Changes


Month

(Jan.2014=100)

Index

NumberM-o-M

Index

NumberM-o-M

Index

NumberM-o-M

September 2016 102.5 -0.51% 102.2 -0.56% 103.6 -0.36%

October 2016 102.2 -0.33% 101.7 -0.46% 103.7 0.08%

November 2016 101.9 -0.29% 101.7 0.00% 102.4 -1.21%

December 2016 100.9 -0.97% 100.7 -1.04% 101.7 -0.77%

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%

17

The Abu Dhabi Residential

Property Rental Price Index

for all residential increased by

0.1 points, from 95.4 to 95.5,




9.56% y-o-y.

Apartment rental prices




y-o-y.

Villa rental prices registered a

decrease in May 2017. Prices

decreased 0.50% m-o-m and

also decreased 8.11% y-o-y.

Abu Dhabi Residential Property Price IndicesRental Price Indices

18

Apartment

100

0

Villa

100

0

100.0

95.5

94.1 93.6

All Residential

100

0

100.0

96.2

95.4 95.5

100.0

96.495.7 96.0


19(January 2014 = 100)

M-o-M:

0.13% M-o-M:

0.28% M-o-M:

-0.50% 2014 Jan 2017 Mar 2017 May2017 Apr


Rental Price Indices

0%

-3.5%

-6.5%

-9,5

-12.5%



0.13%

-1.89%

-5.48%

-9.56%

-11.40%

0.28%

-1.52%

-5.19%

-9.93%

-11.83%

-0.50%

-3.33%

-6.59%-8.11%

-9.71%

M-o-M

0.13% M-o-M

0.28% M-o-M

-0.50%


20

Abu Dhabi Residential Property Price IndicesRental Price Indices and Monthly Changes


Month

(Jan.2014=100)

Index

NumberM-o-M

Index

NumberM-o-M

Index

NumberM-o-M

September 2016 103.1 -0.77% 103.5 -0.87% 101.5 -0.38%

October 2016 102.3 -0.73% 102.6 -0.80% 101.1 -0.43%

November 2016 101.0 -1.24% 101.3 -1.35% 100.2 -0.82%

December 2016 100.1 -0.93% 100.3 -0.93% 99.3 -0.96%

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%

21

Abu Dhabi Gross Rental Yields (%)

Apartment

7,5

0

Villa

0

All Residential

7,2

7,1

0

2017 Apr2017 Mar

6.3% 6.3%

6.2%

7.1%

7.4%

6.2%

7.5%

7.4% 7.4%

7.2% 7.2%

7.1%

2017 May


22

7,4

6,3

6.2

Abu Dhabi Price-to-Rent Ratios

Apartment

0

Villa

0

All Residential

14.4

0

16.2

16.4

16.6

14.5

13.9

16.6

13.9 13.9 13.9

14.4 14,4

14.5

23

14.5

2017 Apr2017 Mar 2017 May


13.9

16.4

16.6

16.2

Abu Dhabi Residential Property Price Indices & Financial Indicators

102.1 99.7

49.0 47.0

96.8 97.2100

75

50

25

0

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

(January 2014 = 100)

2017 Apr 2017 May

M-o-M

-2.35%M-o-M

-4.17%M-o-M

0.41%

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.

REIDIN – DUBAI OFFICE

Concord Tower. No: 2304.

Dubai Media City. PO Box 333929

Dubai. United Arab Emirates

Tel: +971 4 277 68 35

Fax: +971 4 360 47 88

www.reidin.com [email protected]

REIDIN United Arab Emirates Residential Property Price ......14 18 22 Methodology and Coverage 25...

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