• 62 percent increase in rental price of commercial retail spaces across Dubai between January and August 2015
• Demand (enquiries) for rental units in Palm Jumeirah increased by 4 percent and Dubai Marina saw a decline of 16 percent respectively
• Rentals in investor hotspot Al Furjan saw a 254 percent increase in demand (enquiries)
• The Burj Khalifa area sees 60 percent increase in demand (enquiries) of rental properties while Downtown, as a whole, witnesses a 18 percent decrease
Dubai - dubizzle - the leading classifieds website in the Middle East and North Africa - referred to the 3.7 million monthly visits to its property section to create an in-depth report on Dubai's ever-changing property landscape.
Unveiled at this year's Cityscape, dubizzle's latest property report was compiled following eight months of trend analysis (using data from January-August 2015) on the Dubai real-estate market, with data revealing the latest trends in commercial, retail and residential real estate across Dubai's key communities.
The report also provides insight into communities and areas are best suited to potential renters based on their annual income, using the universal rule of thumb that no more than 35 percent an individual's annual income should be spent on accommodation.
Commenting on the findings of the report, Ann Boothello, Product Marketing Manager at dubizzle.com, said, "Dubai's property landscape is ever-changing, and with recent game-changing events such as the drop in oil prices, lift in sanctions in Iran, and an increased frequency in the launch of several off-plan developments, the Dubai real estate market is being scrutinized by all real estate stake holders. As per our previous report, we observed that the market was experiencing price corrections and leveling off. Through our data, we are able to provide useful insights to buyers, landlords and renters to draw on. We have also included details on price per square foot for residential and commercial property to allow for easier comparison when looking at the actual value of in a given area."
On the addition of information on retail and commercial offices, she added: "This is a completely new part of the report, which is vital for business owners and companies. The cost of commercial retail space, for example, has increased significantly both for rent (61 percent) and sale (50 percent)."
Residential for Sale Prices per Square foot & Average Rental prices
The report reveals that waterfront communities have experienced a slight dip in the median price per square foot, with the Palm Jumeirah seeing a drop from AED1800 in January to AED1700 in August. This price decrease was also reflected in the average annual rental prices of three-bedroom apartments, which dropped by four percent. Two-bedroom apartments in the area, however, saw a slight increase of three percent in May. Overall, though, they maintained an average price point of AED 175,000 from the beginning of the year to date.
Dubai Marina saw no fluctuation in its median price per square foot, maintaining a price of AED 1,800 per square foot since the beginning of the year. With regard to average rental prices, the report showed a very slight drop in the price of one-bedroom apartments, decreasing from AED 105,000 in January to AED 103,000 in August. A similar dip in price was also seen in three-bedroom apartments, which started the year off with an annual average price of AED 225,000 in January and decreased by AED 20,000 to AED 205,000 in August. Despite the decrease in prices across one and three-bedroom apartments, two-bedroom apartments saw an increase of three percent, from an average of AED 150,000 in January to AED 155,000 in August.
In the heart of it all, Downtown Dubai and the Burj Khalifa, median square foot sale prices were well maintained and saw only marginal differences. Downtown Dubai properties started the year at AED 2,600 in January and, by August, had decreased only slightly to AED 2,400. The Burj Khalifa areas also remained stable with prices at AED 4,000 per square foot In January and AED 4,000 per square foot in August. Further indicating stability in the area, one and two-bedroom rental apartments in Downtown maintained their average annual price points of AED 120,000 and AED 175,000, respectively, throughout the eight month period. Three-bedroom rental apartments in Downtown also maintained an average annual price of AED 300,000 during the same period.
The Burj Khalifa area saw a mild spike in the average annual rent prices of one and two-bedroom apartments, increasing from AED 188,000 and AED 290,000 in January to AED 195,000 in and AED 315,000 in August. Three-bedroom apartments in the Burj Khalifa, however, saw a decrease of five percent, dipping from AED 420,000 in January to AED 400,000 in August.
Also included in the report findings are 'investor hotspots' such as Al Furjan and Jumeirah Village Circle (JVC), both of which saw little to no fluctuation in their median sale price per square foot. Al Furjan maintained a median per square foot of AED 1000 per square foot between January and August. JVC saw a dip from AED 935 in January to AED 905 in August.
The average annual price of rent for a two-bedroom apartment in Al Furjan showed a considerable spike, jumping from AED 110,000 in January and to AED 142,000 in August. Three-bedroom apartments in the area maintained an average annual rent price of AED 170,000, yet three-bedroom apartments in JVC decreased in price from AED180,000 in January to AED170,000 in August, and two-bedroom JVC rental units maintained and average Annual rental price of AED 160,000.
The Springs and Arabian Ranches have long held their positions as villa community favorites in the Dubai real estate market. The report shows that, over the past eight months, both communities maintained their respective sale price per square foot, with Arabian Ranches staying at AED1,000 per square foot and The Springs maintaining an average price of AED 1,200 per square foot.
The Springs saw an average annual rental price of a three-bedroom villa increase from AED188,000 in January to AED198,000 in August, with the average annual rental prices of two-bedroom villas in the same area maintaining an average price of AED 140,000 this year. Two and three-bedroom villas in the Arabian Ranches community, however, experienced a drop of four and seven percent, respectively, in their average annual rent prices over the same period.
Commercial office and Retail
The report took a collective look at the median price points of commercial office and retail properties for sale (per square foot) and for rent, looking at space ranging from 500 - 1000 square feet in size across Dubai, from January to August 2015.
Commercial office spaces saw an increase of around three percent in median rental prices from January to August and a huge 62 percent increase in the median rental price of commercial retail spaces.
Median sale prices, per square foot, of commercial retail space showed a notable fluctuation of 50 percent from AED 1,000 in January to AED 1,500 in August. Contrastingly, no fluctuation was seen in the median price per square foot of commercial office spaces, which maintained their average of AED 1,300.
Demand (enquiries) trends in Volume
Demand, i.e. Enquiries for properties on dubizzle, for Sale units in the waterfront communities of The Palm Jumeirah and Dubai Marina saw an increase of one percent and a decrease of nine percent respectively
The Burj Khalifa area saw a 60 percent increase in demand of rental properties while Downtown, as a whole, witnessed an 18 percent decrease in demand between January and August 2015.
In the Downtown Dubai area a decrease of 26 percent in demand was seen in for Sale properties. The Burj Khalifa, on the other hand, saw a 127 percent increase in demand of units for Sale.
Rentals in investor hotspot Al Furjan saw a 254 percent increase in demand. JVC on the other hand saw a 233 percent increase in demand of rental units. Also for sale units in Al Furjan witnessed a decrease of 25 percent. JVC saw an increase of demand in properties for Sale of 152 percent.
The Arabian Ranches are also in high demand by renters: increasing by 336 percent over the past eight months. Demand for rental units in The Springs slightly behind that of The Arabian Ranches with 258 percent increase.
Demand of for Sale units in the Arabian Ranches increased by 17 percent, similarly the springs noticed an in creased demand of for Sale properties by 111 percent
Income versus Community - who lives where
The universal standard, and that recommended by financial advisors, is the allocation of 35% of a person's annual income for rental accommodation. Dividing the cost of accommodation with a partner or "flat mate" provides for a healthier budget to spend on accommodation. However, for individuals living alone, they need to be more price sensitive when it comes to picking a locality so as to be able to put away some earnings into a savings fund. The report provides an overview of which communities are suitable for different income brackets.
According to the 35 percent rule of thumb, an individual living alone in a one-bedroom apartment in Downtown Dubai would require an average income of AED 30,000 per month which will allow them to put aside AED10,500 per month and manage to live well and save as a result; whereas a person renting a one-bedroom apartment in Jumeirah Village Circle, considering current market prices, would require a lesser income of AED 20,000 per month, having them put aside AED 5,250 per month and to able to manage other expenses. The reality is that for the young and upcoming workforce group, their earnings tend to fall anywhere between AED 10,000 and AED 20,000 or less, hence several opt-in to share - this works well.
Demographics
Dubai can be best described as a cultural melting pot; the report also revealed top 10 nationalities shopping for property to rent and buy. Indians top the list for top 10 nationalities looking for Property for Rent and Sale on dubizzle.
Top 10 - Buy
India
Pakistan
United Arab Emirates
Philippines
Egypt
United Kingdom
Jordan
Syria
Lebanon
United States
Top 10 - Rent
India
Philippines
Pakistan
Egypt
United Arab Emirates
Jordan
United Kingdom
Syria
Sri Lanka
Lebanon
-Ends-
About dubizzle
dubizzle.com is the leading free classifieds website for users in the Middle East and North Africa. 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, and is also available in Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia and Tunisia.
Contacts
Hicham Younis
Account Manager
Hicham.younis@grayling.com
050 699 3349
© Press Release 2015
