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The Key Highlights for the year to date (YTD) 2013 are:
> Dubais residential prices increased in Q1, up 16% on average Y-o-Y and as much as 23% Y-o-Y in certain locations. Rentals for residential units were up around 10% Y-o-Y. > Abu Dhabis residential prices improved during the 1st quarter and villa prices are now up 5.3% Y-o-Y. Apartments, however still remained slightly down, -1.6% Y-o-Y, due to supply being much higher than demand. Employees have to start moving to the capital before September if they work in the government or in government-related entities in order to continue to receive an accommodation allowance. This could explain why apartment rentals did well gaining 4.4% Y-o-Y. > Dubai office rents have joined the recovery with increases around 5% on average Y-o-Y. > Hotel occupancies in Dubai hit a record high averaging 87% in the first quarter of 2013. This is mainly due to the Dubai Shopping Festival, and rising demand from other MENA countries.
Dubai: Residential
Dubai residential continues to experience positive growth. Apartment prices have rallied and outperformed villa prices for a third straight quarter, up 2% in Q1 2013 and 17% Y-o-Y. Villas prices have had a strong run in 2012 and enjoyed a 0.6% Q-o-Q and 14% Y-o-Y. Rentals increased 10% in the year in both the Dubai apartment and villa markets driven by the rising demand from relocations from other emirates as well as new tenants moving to the UAE. The first quarter of 2013 witnessed impressive performance in terms of property transactions in Dubai. According to the Land Department (DLD) the Emirate registered 14,260 Property transactions, which indicates 223 sales or mortgages per day. The DLD has announced that the total value of real estate transactions in the emirate jumped 63% to 44 billion in the 1st Quarter of 2013 compared to the same period last year. Dubai Residential Prices (AED per sq ft)
1,500 1,250 1,000 750 500 250 0 Mar-13 Dec-12 Dec-07 Sep-07 Dec-08 Sep-08 Dec-09 Sep-09 Dec-10 Sep-10 Mar-12 Dec-11 Mar-07 Jun-07 Jun-08 Mar-08 Jun-09 Mar-09 Jun-10 Mar-10 Jun-11 Mar-11 Sep-11 Sep-12 Jun-12
Apartments
Villas
Apartments
Villas
Apartments (LHS)
Villas (RHS)
Apartments
Villas
UAE: Commercial
After two years of consolidation the commercial market in Dubai is showing signs of recovering and growth starting to show in welllocated assets. According to Cluttons the rental market was up on average 4.7% Y-o- Y with tertiary areas experiencing the highest growth rates, coming off their lower base rentals. Future supply may still dampen the recovery in certain areas however, positive UAE macro indicators point to future growth in this sector.
Anthony Taylor Fund Manager Real Estate Emirates NBD Asset Management
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