quarter. Rental payments made in four cheques increased by 6% over the quarter. This is among the incentives that landlords have been offering to keep units occupied.
Off-plan sales accounted for 58% of the total sales in Q2 2018. Mohammed Bin Rashid City, Business Bay and Jumeirah Village Circle dominated the off-plan sales during the second quarter of the year. On the other hand, Dubai Marina and International City led the secondary market apartment sales, along with Dubai Sports City, which accounted for 33% of the total apartment secondary sales during Q2 2018. Secondary market sales among villas/townhouses surpassed the off-plan sales in Q2 2018, led by Emirates Living and International City, which together accounted for 23% of the total secondary market sales registered during the second quarter.
For the remainder of the year, the majority of the upcoming supply is concentrated in Business Bay, Jumeirah Village Circle and Downtown Burj Khalifa. Approximately 52% of the upcoming supply expected to be handed over during Q3. Increasing handovers will continue to impact rents in most locations across Dubai as tenants have more choice. This will also impact occupancies in existing stock and should be factored into net yield estimations for the forthcoming period.
Property Monitor Residential Survey
The report also incorporates the Property Monitor Residential Survey, conducted among partner agents operating within Dubai. The survey shows that majority of agents expect prices and rents to decrease by up to 5% in Q3 2018. However, majority believe that the transaction activity will improve over the next quarter and buyer enquiries, seller instructions and agreed sales will be higher than those in Q2.
Please see the attached documents for the Q2 2018 Dubai Market Report.
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Sale prices and rents are derived from Property Monitor (www.propertymonitor.me), a real estate intelligence platform established by Cavendish Maxwell in 2014. Property Monitor provides real-time, market-wide transactional data and trends. Working with governments, agencies, banks, developers and corporate investors, it provides deeper insight into real estate advisory, investment, and lending activities.
The average sales price per sq ft is based on the Property Monitor Index which incorporates signed contracts, registered transactions, valuations and listings verified by Cavendish Maxwell’s market leading valuation department.
Property Monitor Residential Survey is a quarterly study of agent opinion designed to identify residential market sentiment. This research highlights how new enquiries, leasing activity and transactions, among other metrics, changed from quarter to quarter with agent predictions compared to actual real market performance.
Supply projections for residential projects are based on the Property Monitor Supply Tracker which tracks supply in real time, regular tracking of construction projects, new launches and delays. This is achieved through site inspections as well as regular feedback from developers, contractors, Cavendish Maxwell’s building consultancy team and related government entities.
Cavendish Maxwell is a highly respected independent firm of chartered surveyors and property consultants, focusing on property services throughout the Middle East and Africa. Established in 2008, Cavendish Maxwell is now one of the region’s most in influential property consultancies, employing over 80 people from offices in Dubai, Abu Dhabi and Muscat.
As a fully qualified member firm of the Royal Institution of Chartered Surveyors (RICS), and with extensive knowledge of the region, Cavendish Maxwell has the necessary experience, expertise and insight to deliver property advice of the highest standard. The company’s reports are used for loan security, audit, insurance reinstatement, dispute resolution, risk management, debt recovery and performance analysis.
© Press Release 2018