Abu Dhabi - Dubai residential rents declined by 3% during the second quarter of 2015, according to the latest ADIB/MPM Properties Real Estate report.This comes amongst a surge in supply as 6,750 new residential units were delivered this quarter, taking the total Dubai residential stock to 479,000 units.
The majority of the new supply was added along the Sheikh Mohammed Bin Zayed road, with the International Media Production Zone (IMPZ) area accounting for 26% of the total supply.
Capital values for completed apartment units fell 3.5% drop quarter-on- quarter, with averages sale prices in Business Bay witnessing the biggest fall of 5%.
"The volume of new projects in the Dubai market means that properties willincreasingly need to appeal to potential buyers' sense of value," said Paul Maisfield, CEO of MPM Properties, the real estate advisory subsidiary of Abu Dhabi Islamic Bank (ADIB). "That means a shift towards well managed, self-contained andmid-market properties, particularly close to the Expo 2020 site. We are also seeing a greater emphasis on buyer incentives and unique selling points, especially in the luxury segment and expect buyers to benefit from these trends."
Dubai's office sector continues to perform steadily despite a substantial rise in new office supply with capital values remaining broadly stable. An additional 2.5 million sq. ft. of new office spaces is forecast to enter the market by the end of 2015 with the majority of this supply being delivered by a small number of developers / investors.
Meanwhile, Dubai's prime retail sector continues to perform well with healthy footfall from Dubai's residential population and tourist footfall from GCC countries, China and India.Average prime rental ratesincreased 6.4% in Q2 as new retailers struggled to find space in prime retail centres.
The hospitality sector saw over 1,200 hotel and hotel apartment rooms added during the second quarter, with the majority added within the Business Bay area (68%).The impact of the drop in Russian tourists has largely been felt across the luxury segment of the market; however double digit growth in tourist numbers from India, China and other African countrieshas kept the budget segmentstable.
ADIB/MPM's real estate market data and rental indices are collated from live transactions from MPM's agency team and its property portfolio of over 23,500 units (covering residential, offices, hotels and retail malls) under MPM's management. For the full report please visit www.mpmproperties.ae
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About ADIB
ADIB is one of the largest retail banks in the UAE. Its 750,000 customers benefit from a network of nearly 88 branches and more than 700 ATMs, as well as online, mobile and phone banking, providing them access to their accounts 24 hours a day. Named "Best Bank in the UAE" by The Financial Times' The Banker publication, ADIB has a rich track record of innovation, including introducing the award-winning Ghina savings account, award-winning co-branded cards with Etihad and Etisalat and a wide range of financing products. The bank has continuously increased its asset base over the past five years and is continuing to build its presence internationally in countries such as Egypt, in which it has 70 branches, as well as the Kingdom of Saudi Arabia, the United Kingdom, Sudan, Iraq and Qatar.
For media information, please visitwww.adib.aeor contact:
ADIB
Radwa Shehab
Senior Corporate Communication Manager
Direct: +971 2 6910169
Mobile: +971 50 473 4482
Email:Radwa.shehab@adib.com
Brunswick Group
Mouaffak Hajjar
Executive
Direct: +971 2 234 4604
Mobile: +971 56 174 8183
Email: ADIB@brunswickgroup.com
© Press Release 2015
