Dubai free zone Jafza sees workforce grow by 8.5% in 2015
Jebel Ali Free Zone staff numbers reach 144,000 by end of 2015 as companies grow by 8%
UAE's Masdar set to complete rural Morocco solar project in Q2
Abu Dhabi’s renewable energy company says it has installed 50% of project to electrify rural Morocco
UAE's Manazel launches first overseas real estate project
Manazel Amman is the company's first development outside of the UAE; will include 1,600 homes
Damac's Sajwani said to see fortune soar 20% to $3.9bn in 2016
Chairman of Dubai property developer has reportedly bucked downward trend of Gulf billionaires monitored by Bloomberg
UAE demand for business loans up but banks less willing to lend
UAE Central Bank reports hike in demand for business loans in first quarter
Dubai's Nakheel says Q1 net profit up 8% to $400m
Property developer says profit rise mainly due to handover of more than 500 units during quarter
Struggling Arabtec may break even in 2016, eyes profit in 2017
Dubai contracting giant made a loss of nearly $640m in 2015, blamed rising costs and tough market conditions
Luxury hotel brand Waldorf Astoria to open in Dubai's DIFC
Waldorf Astoria Dubai International Financial Centre is expected to begin welcoming guests in autumn 2017
Abu Dhabi Int'l posts 9.5% rise in Q1 passenger traffic
Operator says more than 6m people use airport between January and March, as Indian routes see over 1m passengers
Dubai's Amanat to distribute 1.5% dividend in first full year of ops
Chairman of integrated healthcare and education company says 'significant progress' has been made in 2015
$1bn Warner Bros theme park to open in Abu Dhabi in 2018
Visitors will be able to step inside Gotham City and Metropolis; project set to create 1,000 new jobs
Emaar Malls sees 124m shoppers in 2015, approves 10% dividend
Emaar chief Mohamed Alabbar says he plans to expand business by creating 'iconic retail destinations'
Global sovereign wealth fund assets rise to $6.51trn
SWFs achieve 3% growth despite recent market volatility and low oil prices, according to new data
Dubai skyscraper office rents stay flat in H2 2015
Rental values in Dubai high-rises are a sixth of those charged in Hong Kong, according to Knight Frank
Abu Dhabi Islamic Bank posts 6.9% rise in Q1 net profit
Emirate's largest sharia-compliant bank says it made net profit of more than $131m during quarter
In a comparative study of Q1’15 with Q1’16, Bayut.com found apartment rents falling 3% this quarter, while sale prices dropped by 6%. We feel the adjustments are subdued and signs of a market adjusting itself.
However, when Bayut compared Q1 2016 average rents with those at the end of December 2015, the average rental value was found to have increased by 3%. Apartment rental yields remained attractive at 6% and reached as high as 8% in select bed categories.
But as more and more households move to the cities suburbs, investment opportunities in areas like Dubailand and Dubai Sports City become all the more enticing. The increased popularity of these localities coupled with low property prices has resulted in rental yields as high as 9%.
Considering residential supply, almost 4,600 residential units were reported to be completed in the first quarter of 2016 and 10% of there were actually projects delayed from 2015. Majority of these were located in Jumeirah Village Circle, Mohammed Bin Rashid City and Dubailand. Although our quarter to quarter comparison shows an average adjustment of 3%, it’s encouraging to note that rental values have gone up from the end-of-2015 mark, hinting at a market getting ample demand from a rising population.
Rents in Dubai hit by job losses
Dubai Marina has both mid-priced and high-end rent options, the report stated[COPYRIGHT SIGN] Provided by 7DAYS Dubai Marina has both mid-priced and high-end rent options, the report stated.
Redundancies among professionals is among the reasons Dubai’s rental sector saw the largest quarterly decline for five years, according to a new report.
Real estate consultancy Cluttons recorded a 2.7 per cent drop in the first three months of this year, compared with the same period in 2015.
Apartments registered a fall of 4.1 per cent while villa rents fell by 1.8 per cent. The drop is only seen when tenants – who are locked into their contracts – come to renew.
Faisal Durrani, Head of Research, said: “It is our view that an overall decline of around five per cent on average is likely within 2016. Weaker economic conditions have hampered the rate of overall job creation which is trimming the normally robust stream of tenants, causing a drop in rents.”
According to the report weakness in the global economy is translating into a rising number of redundancies in the finance and banking sector – which is a critical source of credit for tenants.
Last week, Morgan McKinley reported job vacancies in the UAE dropped 12 per cent in the first quarter of 2016, compared with 2015, concluding: “It’s a tough market out there.”
Durrani added: “The top end of the property spectrum including the Burj district, Dubai Marina, Palm Jumeirah and DIFC will see more significant corrections of five to seven per cent.”
Furthermore, the benefit on job creation from Expo 2020 is not expected until about 2018, the report claimed, though it will have a positive impact when it arrives.
During 2016, Cluttons expects 7,058 new properties to be completed, followed by a further 10,299 in 2017.
Dubai set for another fall in property prices, says S&P
S&P’s predictions come as property brokers debate the timing of a potential property market recovery in Dubai. Sarah Dea / The National
Dubai set for another fall in property prices, says S&P
April 27, 2016 Updated: April 27, 2016 05:22 PM
Average house prices in Dubai are likely to fall by another 10 per cent this year with no sign of improvement on the immediate horizon, according to the ratings agency Standard & Poor’s.
The agency, which rates bonds issued by three UAE developers – Emaar Properties, Damac Properties and Aldar Properties – said that the historically low price of oil and the strong dollar would continue to push property prices down in Dubai throughout the year, while prices in Abu Dhabi will start to follow suit.
In a note published on Wednesday, S&P said that after falling between 10 and 13 per cent last year, it expected similar falls this year with few signs of optimism for the year after.
“For the coming year we see no sign of market improvement for the UAE real estate sector, despite housing affordability improving from the current price environment," said Sapna Jagtiani, the primary credit analyst for S&P in Dubai.
“Pressures have arisen from declining oil prices, dampening the hiring and expansion plans of oil-exposed companies; non-oil private companies’ business activities having softened; and the strong US dollar rendering UAE real estate more expensive for international investors holding non-US dollar liquidities."
But S&P said that despite the negative outlook for the real estate market it did not expect to downgrade the ratings on the three developers, which for Emaar and Damac stand at “stable" and for Aldar “positive".
“Generally we believe that our rated developers could absorb a 10 per cent drop in residential sales prices in Dubai this year," Ms Jagtiani said.
The ratings agency said that it came up with its predictions based on reports from property brokers in the UAE as well as from talking to the companies it rated rather than from any specific analysis of Dubai house prices.
S&P said that it did not foresee a rebound in oil prices until at least next year.
S&P’s predictions come as property brokers debate the timing of a potential property market recovery in Dubai.
This month, JLL reported that despite a 10 per cent fall in house prices in the year to the end of last month, average prices in the city were close to bottoming out and values were likely to increase later this year.
But Cluttons reported that sales prices fell by 2.2 per cent in the first quarter of the year and uncertainty over oil prices, which has a knock-on effect on banks’ liquidity, meant a recovery in the short term was unlikely.
Dubai property prices slump by most in five years in Q1
Cluttons says 2.2% decline is biggest quarterly decrease in average residential values in five years