• dubizzle and JLL launch their first co-authored property report with a focus on Dubai’s residential market to further drive data transparency in the UAE’s property sector.

  • Market conditions Y-O-Y: Data from dubizzle on 12 popular communities shows that average rents across Dubai declined by 4% over the past year (Q3 2015 to Q3 2016), while sale prices have fallen by 4%, but that over the third quarter of 2016, performance remained largely unchanged, demonstrating that the rental and sale market is bottoming out.

  • Recovery in 2017: Providing supply levels remain constrained, the market is expected to witness a recovery of both prices and rentals in 2017, but increases will be limited to single digits in most locations.

  • Supply:  According to JLL’s data, residential supply will increase by 4% per annum from 2017 to 2019 (compared to an average of 3% per annum in previous years) with not all announced projects being delivered.

  • Threats: The greatest threats to the anticipated recovery in 2017 would be a further slowdown in the Dubai economy or an increase in the materialisation rate leading to a possible oversupply.

  • Mid-market vs. Premium-market: Data from dubizzle suggests that the mid-market sector has seen a more modest decline in sales price per sq.ft (-2%,) than the premium housing communities (-6%) over the past year.

  • World Events: UK investors accounted for 7% of all sales in the Dubai real market in the first half of 2016, down from 9% in the same period last year. The falling value of the pound, following Britain’s vote to leave the European Union in June, is expected to further negatively influence this trend.

Dubai, 20 November 2016 

dubizzle, the UAE’s leading property platform, released its first property report in collaboration with JLL, the world’s leading real estate investment and advisory firm.  The report, launched at the second edition of The Exclusive Agency Club (TEAC) event, provides insights and trends in the Dubai residential market, predicting a gradual upturn in residential properties in 2017.

dubizzle and JLL have joined forces and shared data primarily to drive forward transparency in the UAE property market, in order to empower buyers, tenants, investors and agents to make informed decisions and play a role in creating a sustainable knowledge-sharing market.

Data from dubizzle, JLL and other market sources shows the level of both sale and rent prices in Dubai has fallen over the past year but has now started to stabilise as the market reaches the bottom of its current cycle. The report foresees that the market will recuperate next year, based on the expectation that Dubai’s economic growth will be marginally higher in 2017 than in 2016.

The first co-authored report revealed that the Dubai residential sector is likely to experience sustainable growth in supply, with the year-on-year increase in residential supply from 2017 to 2019 expected to average 4% per annum, compared to an average of 3% per annum in previous years. As in previous years, there are far more projects announced than are likely to be delivered, with the materialisation rate likely to remain low as many announced projects have not commenced and those that have commenced experience delays.

With 1,600 units estimated to be completed in Dubai South by 2020, more residential projects are expected to be announced in 2017, as preparation for Expo 2020 gains momentum.  

The modest improvement in performance in 2017 is predicated on several factors: increased investor confidence as they recognise that the market is close to its cyclical trough; improvements to the regulatory environment and increased transparency in the market; the gradual recovery of oil prices; continued government investment in hospitality, aviation, healthcare and other growth sectors; and increased employment and construction activity in the lead up to Expo 2020.

Data from dubizzle suggests that the mid-market sector has seen a more modest decline in sales price per sq.ft (-2%) than the premium housing communities (-6%) over the past year. Al Furjan apartments were one of the few property types to experience an increase in sales price per sq.ft. of 3%. Jumeirah Village Triangle villas saw an increase of 1%. Both now selling at approximately AED 985.5/sq.ft.

According to Ann Boothello, Senior Product Marketing Manager for Property at dubizzle, “We expect that most of the upcoming residential projects will be in the form of apartments. where even, the newer communities such as Al Furjan, once perceptive as a villa community, will  grow to offer more apartments within the mid-market segment in the next few years. dubizzle search volume data highlights an increased popularity amongst online property buyers in more affordable and mid-market communities like Al Furjan, JVC, JVT and Sports City; where JVC received 9.7 million searches for properties by dubizzle property seekers in the last quarter alone.” .”

The greatest threats to the anticipated recovery in 2017 would be a further slowdown in the Dubai economy or a major improvement in the materialisation rate, which could lead to oversupply. With over 11,000 units currently scheduled for delivery in the final quarter of 2016 and more than 30,000 units under construction for planned delivery in 2017, there is definitely the potential for oversupply if all these projects progress on schedule.

In addition, UK investment in Dubai real estate fell from 9% in the first half of 2015 to 7% in the same period this year.he vote to leave the European Union hascaused a sharp fall in the value of the GBP and hence lowered UK outward investment into Dubai, where prices are comparatively higher. Despite this, British nationals are amongst the top five nationalities contributing to property sales transaction volumes in H1 2016, the others being UAE nationals, Indian, Saudi Arabian and Pakistani.

Craig Plumb, Head of Research, JLL MENA, commented: “Developers have traditionally over estimated levels of completions of homes in Dubai, with only around 30% of all announced projects actually being delivered on schedule over the past few years. We continue to see developers phase out the release of units to dampen the opportunity for oversupply. However, it is vital that developers remain conscious of this concern as we draw closer to Expo 2020, which could see a lot of new projects unveiled.

“JLL’s latest Global Real Estate Transparency Index (GRETi), reveals that Dubai is already the most transparent market in the region but transparency levels remain behind those of more mature markets. There is a clear relationship between more transparent markets and inward investment and the Dubai government has recognised the important role that improving market transparency would have in attracting additional overseas investors to buy real estate here. This is the first time that we have collaborated with dubizzle to help provide investors with more insight and understanding and we look forward to continuing to champion efforts to increase data transparency,” said Plumb.

The co-authored property report breaks down the affordable and premium segments, property for rent and sale, and supply in the market. It also discusses the implications of Dubai’s legislations that safeguard various stakeholders within the real estate industry and argues why the city is an expat-friendly tourist destination and an optimal location for Foreign Direct Investment (FDI).

The report is available online to download, via the link here.

-Ends-

About dubizzle:
dubizzle.com is the leading free classifieds platform for users in the United Arab Emirates. Since its launch in 2005, dubizzle.com has become the number one platform for users to buy, sell, or find anything in their community. A community where underused goods are redistributed to fill a new need, and become wanted again, where non- product assets such as space, skills and money are exchanged and traded in new ways that don’t always require centralized institutions or ‘middlemen’. dubizzle.com is headquartered in the UAE.

dubizzle is an OLX company:
OLX is the world’s leading classifieds platform in growth markets and is available in more than 45 countries and over 50 languages. OLX connects local people to buy, sell or exchange used goods and services by making it fast, easy and free for anyone to post a listing through their mobile phone or on the web. Every month, hundreds of millions of people in local markets around the world are already using OLX’s online marketplace to find and sell a wide range of products, including furniture, musical instruments, sporting goods, cars, kids and baby items, motorcycles, cameras, mobile phones, property and much more. OLX operates in fast-growing markets around the globe, where OLX helps people improve their lives through smart person-to-person trade. OLX Arabia is actively expanding in the MENA region in Bahrain, Egypt, Kuwait, Lebanon, Oman, Qatar and Saudi Arabia. OLX employs more than 1,200 committed employees worldwide located in places like Bangkok, Buenos Aires, Cape Town, Delhi, Jakarta, Lagos, Lisbon, Manila, Nairobi, Poznan, Rio de Janeiro and São Paulo.

About JLL:
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate.  JLL is a Fortune 500 company with, as of December 31, 2015, revenue of $6.0 billion and fee revenue of $5.2 billion, more than 280 corporate offices, operations in over 80 countries and a global workforce of more than 60,000.  On behalf of its clients, the company provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. As of September 30, 2016, its investment management business, LaSalle Investment Management, has $59.7 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com

About JLL MENA:
Across the Middle East, North and Sub-Saharan Africa, JLL is a leading player in the real estate market and hospitality services market. The firm has worked in 30 Middle Eastern and African countries and has advised clients on real estate, hospitality and infrastructure projects worth over $1 trillion in gross development value. JLL employs over 300 internationally qualified professionals embracing 35 different nationalities across its offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Al Khobar and Cairo. Combined with the neighbouring offices in Casablanca, Istanbul, Johannesburg, Lagos and Nairobi, the firm employs more than  1,100 staff and provides comprehensive services in the wider Middle East and African (MEA) region. www.jll-mena.com; www.jllvantagepoint.com 

Media enquiries:
Abdallah Touqan
Director of PR, Communications & Events
Abdallah@dubizzle.com 
+971 55 9866 891

Grayling PR
dubizzle@grayling.com
Kathryn Athreya
Head of Marketing & PR – MENA – JLL 
kathryn.athreya@eu.jll.com

+ 971 4 426 6999

Rana Hossam 
jll@fourcommunications.com
+971 52 526 9472

© Press Release 2016