Dubai property prices will continue to fall for the rest of the year, but the rate of decline will be slow, according to a new report by Deloitte.
In an update to its Middle East Real Estate Predictions report published in January, the Big Four accountancy firm said that residential prices continued to drop by 3.8 per cent in the year to June, with the market continuing to be indirectly affected by lower oil prices.
It said the proportion of people surveyed in Dubai who had been expecting an increase in disposable income had dropped to 30.2 per cent this year, down from 52.9 per cent in 2015.
It also said that its prediction on the number of units being delivered remains on track.
In January, it predicted just 10,000 units would come to market in 2016 compared with market stakeholders’ forecasts of 40,000. Its prediction remains on track, the firm said, with 5,000 units delivered in the first six months.
The firm said that both residential and hospitality markets rebalanced towards “a new normal” in the first six months of 2016, with the residential sector focusing more on affordable projects and serviced apartments remaining in strong demand in the hospitality sector.
Data from the Dubai Department of Tourism and Commerce Marketing found that serviced apartments experienced the highest occupancy level of any hospitality category at 83 per cent.
“Average hotel occupancy in Dubai in the first six months of 2016 was 77 per cent, slightly ahead of our forecasts,” said Robin Williamson, a managing director for Deloitte Corporate Finance Middle East.
However, he added that operators had been forced to discount to maintain occupancy, with average daily rates declining in the first six months of the year.
“We anticipate that this trend is set to continue in the second half of 2016,” he added.
Meanwhile, the office market continued to be affected by trends in local sub-markets.
Areas such as Business Bay, where new stock coming on to the market, were subject to rental price declines, but core locations such as DIFC continued to perform well, with waiting lists for space in many buildings and the under-construction Gate Village 11 building already 100 per cent pre-let.
“We anticipate that these trends are likely to continue in H2 2016, with further completions in secondary locations giving tenants greater negotiating power,” Mr Williamson said.
“In free zones, we anticipate that factors such as high-quality infrastructure and more accessible public amenity provision will continue to drive demand from corporate occupiers.”
New figures from data provider Reidin for August found that there had been a marginal growth of 0.14 per cent for Dubai properties for sale in August.
On a rolling three-month basis, sale prices have remained flat and rents have dropped by just 1 per cent.
mfahy@thenational.ae
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Honeymoonish
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
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What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
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The biog
Favourite colour: Brown
Favourite Movie: Resident Evil
Hobbies: Painting, Cooking, Imitating Voices
Favourite food: Pizza
Trivia: Was the voice of three characters in the Emirati animation, Shaabiyat Al Cartoon
How Apple's credit card works
The Apple Card looks different from a traditional credit card — there's no number on the front and the users' name is etched in metal. The card expands the company's digital Apple Pay services, marrying the physical card to a virtual one and integrating both with the iPhone. Its attributes include quick sign-up, elimination of most fees, strong security protections and cash back.
What does it cost?
Apple says there are no fees associated with the card. That means no late fee, no annual fee, no international fee and no over-the-limit fees. It also said it aims to have among the lowest interest rates in the industry. Users must have an iPhone to use the card, which comes at a cost. But they will earn cash back on their purchases — 3 per cent on Apple purchases, 2 per cent on those with the virtual card and 1 per cent with the physical card. Apple says it is the only card to provide those rewards in real time, so that cash earned can be used immediately.
What will the interest rate be?
The card doesn't come out until summer but Apple has said that as of March, the variable annual percentage rate on the card could be anywhere from 13.24 per cent to 24.24 per cent based on creditworthiness. That's in line with the rest of the market, according to analysts
What about security?
The physical card has no numbers so purchases are made with the embedded chip and the digital version lives in your Apple Wallet on your phone, where it's protected by fingerprints or facial recognition. That means that even if someone steals your phone, they won't be able to use the card to buy things.
Is it easy to use?
Apple says users will be able to sign up for the card in the Wallet app on their iPhone and begin using it almost immediately. It also tracks spending on the phone in a more user-friendly format, eliminating some of the gibberish that fills a traditional credit card statement. Plus it includes some budgeting tools, such as tracking spending and providing estimates of how much interest could be charged on a purchase to help people make an informed decision.
* Associated Press
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