Residential sales and rental prices in Dubai continued to decline in the first quarter, and the trend is expected to persist throughout the rest of 2018, the third year in a row of a market slump, according to a report by consultancy Core Savills.
“Challenges of oversupply, mismatch between offer and supply, weakening demand across other sectors such as office and retail, and relatively lower levels of household income growth are all exerting downward pressures on the market,” said the update released on Wednesday.
As a result, Dubai’s residential market will be “extremely tenant-friendly”, Core Savills said, with rental landlords willing to negotiate on cost rather than have an empty unit.
Average sales and rental prices have dropped in most districts in Dubai - the result of low oil prices dampening demand and squeezing consumer purchasing power. Most analysts say recovery is not yet in sight.
As such, this year will be a “critical” one in terms of market trajectory, Core Savills said. “What follows in the next two years will have a great impact on Dubai’s residential market dynamics post-2020” when the emirate hosts the World Expo.
For apartment sales, Downtown Dubai and Dubai Marina saw the sharpest year-on-year price declines in the first quarter of of the year, at 7.5 per cent and 6.6 per cent, due to a large number of new launches in those areas, which shifted demand to off-plan stock.
“The cascading effect of new stock impacting secondary sales prices, either within the community or in the adjoining areas, is one of the strongest reasons causing a delay in sales price recovery,” said Edward Macura, partner at Core Savills.
________________
Read more:
Dubai house prices, rents drop in first quarter of 2018
VAT could impact property market in 2018, increase costs, JLL says
________________
Emirates Living – including The Greens and The Views communities – saw a 5.8 per cent decline, Jumeirah Lakes Towers suffered from a 5.1 per cent drop, and Business Bay witnessed a 4.8 per cent drop. The only neighbourhoods to see price rises were Discovery Gardens (0.3 per cent) and Dubailand (2.7 per cent).
For villa sales, The Springs and the Meadows saw the steepest year-on-year decline at 10 per cent, followed by Jumeirah Islands at 6.8 per cent and Dubailand at 5.3 per cent. The only communities to see prices rises were Jumeirah Village (0.6 per cent), Emirates Hills (3.5 per cent), and Palm Jumeirah (3.6 per cent).
For apartment rentals, JLT suffered the steepest decline at 9.3 per cent, followed by Downtown Dubai at 9 per cent and DIFC at 8.2 per cent. No community analysed by Core Savills witnessed an increase.
For villa rentals, Emirates Hills saw the biggest drop at 7.8 per cent, followed by Dubailand and Jumeirah Village both with 7.7 per cent, and Palm Jumeirah with 6.5 per cent. Again, no community witnessed a rental price hike.
“With rents now more than 15 to 20 per cent lower than 2015, even in core established districts, many tenants are saving significantly on annual rents by either renegotiating with their current landlords, relocating within a district or moving outwards,” the report noted.
However, despite declining sales market performance, off-plan activity continues to be robust as developers compete on entry prices. A total of 6,000 units were delivered in the year-to-date 2018, and a further 15,500 units are expected over the rest of the year, pushing Core Savills' conservative estimate for the year to over 21,500 units.
The decline in prices “hasn’t significantly dampened occupier sentiment due to the wide variety of options now available at very competitive prices, with higher levels of flexibility offered by both the developers in new launches and landlords in the rental market,” Mr Macura added.
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The%20specs%3A%202024%20Mercedes%20E200
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cyl%20turbo%20%2B%20mild%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E204hp%20at%205%2C800rpm%20%2B23hp%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C800rpm%20%2B205Nm%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.3L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENovember%2FDecember%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh205%2C000%20(estimate)%3C%2Fp%3E%0A
The years Ramadan fell in May
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Trippier bio
Date of birth September 19, 1990
Place of birth Bury, United Kingdom
Age 26
Height 1.74 metres
Nationality England
Position Right-back
Foot Right
Visa changes give families fresh hope
Foreign workers can sponsor family members based solely on their income
Male residents employed in the UAE can sponsor immediate family members, such as wife and children, subject to conditions that include a minimum salary of Dh 4,000 or Dh 3,000 plus accommodation.
Attested original marriage certificate, birth certificate of the child, ejari or rental contract, labour contract, salary certificate must be submitted to the government authorised typing centre to complete the sponsorship process
In Abu Dhabi, a woman can sponsor her husband and children if she holds a residence permit stating she is an engineer, teacher, doctor, nurse or any profession related to the medical sector and her monthly salary is at least Dh 10,000 or Dh 8,000 plus accommodation.
In Dubai, if a woman is not employed in the above categories she can get approval to sponsor her family if her monthly salary is more than Dh 10,000 and with a special permission from the Department of Naturalization and Residency Dubai.
To sponsor parents, a worker should earn Dh20,000 or Dh19,000 a month, plus a two-bedroom accommodation
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Five famous companies founded by teens
There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:
- Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate.
- Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc.
- Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway.
- Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
- Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
