Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> LifeStyle


Phidar Advisory Releases Q4-2015 End-Quarter Residential Research Note: Investor and End-User Demand Trends, Not Supply, Push Prices Down

Monday, 11 January 2016 – Today, Phidar Advisory released its Q4 end-quarter Dubai residential research note. The report shows that residential prices dropped in the fourth quarter of 2015, compared to the previous quarter, and declined through the past year. The report also addresses the recent controversy around supply projections.

“Recent comments from the market highlight the importance of understanding the methodology behind the data,” said Jesse Downs, Managing Director of Phidar Advisory. “This is a positive development, stakeholders should be asking these questions,” she added.

According to Phidar, in 2015 14,300 homes were completed in master planned communities and an estimated total of 18,600 new homes were completed across the city.  Based only on supply pipeline estimates, the 5 year supply pipeline grows at 3.6% compound annual growth rate (CAGR) whereas the demand grows at a robust 6.5% CAGR, largely due to jobs created by the development and running of the Expo 2020 project, which should start to ramp up in 2018. However, when announced and launched projects are included the 5-year supply CAGR jumps to 5.7%-7.0%.

“We monitor construction sites across the city to assess the supply pipeline, but also include a modest growth rate for areas outside of investment zones and master planned projects,” said Ms. Downs. “This creates a more realistic estimate of total supply growth in Dubai,” she added.

In 2015, apartment lease rates decreased a nominal -1.9%, while sale prices decreased -12.7%, pushing gross yields up to 7.7%, an annual gain of 70 basis points. Lease rates for single family homes, also referred to as villas, decreased 5.5% and sale prices decreased -14.8%, which pushed yields up to 5.1%, a gain of 50 basis point in 2015.

Now, in addition to gross yields, Phidar is publishing net yields associated with the projects included in the House Price Index: Dubai 9/5. Average net yields are 6.7% for apartments and 5.1% for single family homes.

Compared to 2014, Phidar's Dubai Real Estate International Demand Index (REIDI) dropped 83% by the end of 2015, primarily driven by exchange rate fluctuations. Phidar's Dubai REIDI is not a measure of actual capital flows, but a real time indicator intended to assess the propensity for attracting capital inflows into Dubai real estate. It is a composite index of GDP and foreign currency z-scores for 22 countries.

“Global economic dynamics are tightening liquidity, increasing capital costs, and slowing growth in the region. These trends could continue for two years,” said. Ms. Downs “Improving transparency can help bring down market risk, which is critical in the current environment,” concluded Ms. Downs.  

Posted by : GoDubai Editorial Team
Viewed 9906 times
Posted on : Monday, January 11, 2016  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Apollo Global exits Ahuja Constructions' super luxury Mumbai residential project at 69.35 Million US...
Next Story : Real Estate Market in Dubai
Email this article Print this article

Share this article with your friends and followers


Back to Top  
Most Viewed Press Release posted in the last 7 days
Let It Glow
Filorga Launches FLASH-NUDE Collection
Let All Your Photos Be Merry & Bright
The Rado DiaMaster Petite Seconde Automatic COSC The Rado watch at the top of th...
HP ProBook x360 11 G3 and G4 Education Edition
Chrono 4 Grande Taille - an extra-special timepiece
30 Years of Ryder Cup Heroes Confirmed for the 30th Edition of the Omega Dubai ...
Maintain Healthy Skin Year Round
PopSockets launches a new collection with crystals from Swarovski, the must-have...
Free gold coins at Malabar Gold & Diamonds Festival
MIDO Baroncelli Lady Day & Night collection
American Eagle Is the Go-to Destination for Gifting This Holiday Season'
Golden Mile Galleria's ‘A Cultural Flair' attracts hundreds of art lovers to Pal...
The Interiors Gift Guide with Home and Soul
Newby Teas Launches Advent Calendar For Christmas 2018
GAZOO Racing Wins Australia Rally at FIA World Rally Championship
Tissot Chemin des Tourelles
24 Karat Gold Elixir by Mehrunisa Launches in the UAE Beauty Market
Growth and inclusivity drive Avaya's channel strategy for 2019
Get Ready for Party Season with Lottie's new make-up hits
Time For Enchanting Moments
Interview with Asil Attar, CEO of Al Yasra Fashion
Festive Gift Sets from Bubble T
Holiday Handbags | GUESS
Holiday Gifting Made Easy with Wet n Wild Beauty Specials
BharatMatrimony launches office in Dubai targeting 2 Million Indians
Tissot PR100 Lady Sport – Chic Glamourous Festive Season
Winter wool Christmas must- haves
Michael Kors Collection Transeason 2019 Press Presentation
New 1948 Seamaster Watches Join the Ranks'
Samsung Galaxy A9 – Designed to capture the world in its fullest
Five-Star Euro NCAP for Jaguar's Electric I-PACE
France Attractiveness Scoreboard 2018 Released
Global Knowledge Index 2018 and The Future of Knowledge: A Foresight Report shin...
UOWD's quality management expert wins ASQ-UAE Quality Professionals Award
Dubai's Most Magical Festive Market Opens at Dubai Festival City Mall
Ring in a dazzling festive season at Ibn Battuta Mall
Tissot PR100 Lady Sport – Chic Sporty yet Feminine
Chinese Manufacturing Companies to Highlight Trade Opportunities in Middle East
Dubai Customs wins 3 awards from Ideas UK 2018
FBMA and 47 Emirati women celebrate UAE National Day
New ACH145 Mercedes-Benz Style Cabin Model Highlights First Presence at MEBAA fo...
Spinneys Dubai 92 Cycle Challenge | Road Closure Timings
Jury Announced for Epson's First Ever Win-A-Robot Competition in Europe, The Mid...
Raja Al Gurg is one of Forbes Magazine's 100 most powerful women in the world
Al Hosn Now Open to the Public
Chic and Stylish Wraps with a 3 in 1 effortless concept
New Menu alert: Moombai & Co. launches exciting and delicious food items to its menu
ICAEW recognises Middle East's best finance professionals
Voting on UAE Superbrands 2019 Begins