Mid-market property segment in demand in 2017:

Sales leads for properties under AED 1000/sqft increase by 24% in 2017 YoY

● dubizzle and JLL launch their co-authored property report with a focus on Dubai's residential sale market for the second year in a row

● Report reveals redistribution of demand to newer mid-market communities in 2017

● In September 2017, over half (57%) of residential property for sale listings on dubizzle Property were in the mid-market segment and received two thirds (66%) of total leads

● An increase in price per sq.ft. in more newly developed communities' year-on-year, such as: Jumeirah Village Circle (8.22%), Liwan (3.97%) and Dubai Sports City (4.96%)

Dubai – dubizzle Property, the UAE’s biggest and most visited Property platform, and JLL, the world’s leading real estate investment and advisory firm, reveal a redistribution of demand to newer mid-market communities on a year-on-year basis.

For the second year in a row, 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. The report was launched at the third edition of The Exclusive Agency Club (TEAC) event, hosting over 250 attendees of leading real estate agents, developers and agencies, at the Address Montgomerie Hotel, Emirates Hills on 16th of November, 2017.

dubizzle Property has over 150k listings at any given time and registers over 3.7m visits per month. According to the co-authored report from the market leaders, there is a distinctive focus from agencies and property seekers on the mid-market segment (AED 1000 and below per sq.ft.) in September 2017, compared to the same period last year.

“Developers in Dubai announced 16 new projects this year – several of them were in the mid-market segment offering attractive payment plans. Agencies who are focused on off-plan sales and have inventory that falls under the less than AED 1000 per sq.ft. bracket are likely to see gains here,” commented Samer Abdin, General Manager, dubizzle Property

In September 2016, 52% of residential Property for Sale listings on dubizzle fell in the below AED 1000 per sq.ft. range and received 42% of the leads. In 2017, this increased to 57% and 66% respectively, indicating a year-on-year growth in demand for mid-market properties.

Increased Focus on Mid Segment Sector

Increased Focus on Mid Segment Sector

Sale Price per sq ft.

2016 Leads

2017 Leads

Change

2016 Listings

2017 Listings

Change

<500

6%

9%

3%

7%

4%

-3%

500-1000

42%

66%

24%

52%

57%

5%

1000-1500

32%

19%

-13%

31%

30%

-1%

1500-2000

8%

5%

-3%

6%

5%

-1%




 Figure - Source: dubizzle – September 2016 vs. 2017

The report also reveals an increase in price per sq.ft. in more newly developed communities’ year-on-year, including apartments in Jumeirah Village Circle (8.22%), Liwan (3.97%), Dubai Sports City (4.96%), Discovery Gardens (19.1%) and Remraam (8.01%), reinforcing the increase in demand for property in this segment. A similar price increase trend was recorded for villas in Town Square (34.65%), Jumeirah Village Circle (3.77%) and Reem Mira (1.26%).

“The Dubai residential market has remained relatively soft during 2017, while there has been little change in average sale prices, rents have continued to decline in most locations. This disguises variations between different communities and different sectors of the market. The most significant changes in the structure of the market during 2017 have been the growth of-off plan sales and a continued focus on the affordable or mid income sector” said Craig Plumb, Head of Research, JLL MENA.

“The sales market appears to be close to the bottom of its current cycle, with little further decline anticipated in 2018.  The rental sector may however see further weakness as the market moves further in the favour of tenants, making Dubai a more competitive and attractive city in which to live”

“One of the largest challenges to the residential sector in 2018 is the threat of potential over supply. Over 120,000 units have been launched for completion by the end of 2020 and if all these projects were to proceed the market would definitely experience an oversupply.   Fortunately for the overall market, the rate of materialization of these units remains low. JLL data suggests that just 53% of the 32,000 units scheduled for completion in 2017 will actually be delivered by the end of the year”.

-Ends-

© Press Release 2017