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April 17, 2017 | 12:30 | Dubai
Residential: The first quarter 2017 VPI displayed an overall 0.7% annual decline in values. This is equivalent to prices being 13.8% below the 2014 peak. Few locations witnessed growth in prices while others remained either flat or saw marginal declines. Monthly capital appreciation between 0.7% and 5.2% were witnessed in Downtown Dubai (ex-Burj Khalifa), Jumeirah Village villas, Arabian Ranches, Jumeirah Park, International City, Media Production City (IMPZ), Discovery Gardens and Remraam. Capital declines of 0.6% to 2.5% were seen in Jumeirah Village apartments, Dubai Marina, Jumeirah Lake Towers, Palm Jumeirah apartments, Burj Khalifa, Jumeirah Islands, the Meadows, and Al Furjan villas.
Office: Monitoring the real estate cycle of freehold office space in Dubai, this quarter features the debut of the VPI office, based on a representative sample of 19 office buildings in 5 locations. The Q1 office VPI stands at 92 points, suggesting that
average capital values for office space are 8% lower than the same period during the base year 2015, marginally higher than the
same period last year and 2.2% higher than the previous quarter. Barsha Heights saw the highest annual increase in capital
values of 14.2%, while Business Bay office prices fell by 12.4% YoY.
Macro Economic Snapshot
• UAE Federal budget surplus rose by 130% in 2016, 75.1% of surplus collected from government service charge revenues amounting to AED 9.93 billion
• Latest Dubai GDP figure saw a YoY growth rate of 2.5% at constant prices for the first nine months of 2016
• Construction and Real Estate activities contributed a total of 13.2% to overall Dubai GDP
• Dubai International airport had 83.6 million passengers in 2016, equivalent to a 7.2% increase YoY
• Dubai’s population ending March 2017 stood at 2.75 million
Full Report is available here