REIDIN announced the UAE Residential Property Price Indices (RPPIs) for April 2018. The indices are designed to be a reliable and consistent benchmark of housing sales and rent prices in Dubai and Abu Dhabi, Ajman, Ras Al Khaimah and Sharjah with a purpose to measure the average differences in house prices in a particular geographic market through a timeline.

REIDIN’s Operations & Research Director Ozan Demir commented: “As the market has become more value driven, the variable that finally has come to the fore has been one of price. Investors and end users will continue to pursue deals where there is price advantage, regardless of whether it is in the off plan or the ready space. This implies that the luxury end of the market will continue to remain under pressure for the foreseeable future..”

Downtrend in Dubai sales prices slows down

According to Residential Property Price Indices, the Dubai Residential Property Sales Price Index for all residential estates decreased by 0.9 points, from 246.1 to 245.2, which represents a decline of 0.36 per cent in April 2018. Prices also went down by 5.09 per cent year on year. Apartment sales prices registered a decrease in April 2018 with a drop of 0.40 per cent month on month, and 4.96 per cent year on year. Dubai Villa Sales Prices also dropped 0.05 per cent month on month and 5.49 per cent year on year.

Dubai villa rental prices decreased more than apartments and all residential estates

The Dubai Residential Property Rental Price Index for all residential estates decreased by 0.3 points, from 87.7 to 87.4, which represents a decrease of 0.32 per cent in April 2018 and 7.69 per cent decline year on year. Apartment rental prices registered a decrease in April 2018 with a 0.31 per cent drop month on month and a 7.23 per cent decline year on year. Villa rental prices registered a decrease in April 2018. Prices decreased 0.40 per cent month on month and 10.23 per cent year on year.

Steady gross rental yields for Dubai

Gross rental yields for Dubai remained steady when compared to the previous month.  Gross rental yield for all residential estates, apartments and villas stayed stable at 7.0, 7.4 and 5.2 per cent, respectively. Price-to-rent ratio for all residential real estates and apartments in Dubai did not change and remained steady at 14.8 and 14.0, respectively. While price-to-rent ratio for villas increased to 19.8 years from 19.7 years, month on month.

Sales prices for all residential estates and apartments in Abu Dhabi entered a mild uptrend

The Abu Dhabi Residential Property Sales Price Index for all residential estates increased by 0.2 points, from 90.3 to 90.5, which represents a decrease of 0.22 per cent in April 2018 and a 6.58 per cent decrease year on year. Apartment sales prices registered a small hike in April 2018 with an increase of 0.64 per cent month on month but a 7.47 per cent decrease year on year. Villa sales prices registered a more prominent decrease and declined 1.16 per cent month on month and 3.73 per cent year on year.

The Abu Dhabi Residential Property Rental Price Index for all residential decreased by 0.2 points, from 86.3 to 86.1, which represents a decrease of 0.13 per cent in April 2018. Prices decreased 9.70 per cent year on year. Apartment rental prices registered a 0.22 per cent month on month decrease and a 10.22 per cent year on year decrease. On the other hand, villa rental prices increased 0.21 per cent month on month and 7.73 per cent year on year.

Gross rental yields in Abu Dhabi decreases only for apartments

Gross rental yields for Abu Dhabi stayed stable for all residential estates at 6.8 per cent month on month. Gross rental yields for apartments decreased from 7.3 to 7.2 per cent. However, gross rental yield for villas increased from 5.9 per cent to 6.0 per cent. The price-to-rent ratio for all residential real estates in Abu Dhabi stayed stable at 14.9 years. For villas, the price-to-rent ratio decreased from 17.3 to 17.1 years, while for apartments, the price-to-rent ratio increased to 14.3 years from 14.2 years.

Apartment sales prices in Ras Al Khaimah goes up while Ajman and Sharjah go down

According to Residential Property Price Indices, apartment sales prices in Ajman registered a decrease in April 2018 with a drop of 1.04 per cent month on month, and 0.11 per cent year on year. Apartment sales prices in Ras Al Khaimah registered an increase in April 2018 with a small hike of 1.10 per cent month on month but decreased 2.13 per cent year on year. Sharjah apartment sales prices registered a decrease in April 2018 by 1.10 per cent month on month but increased 2.99 per cent year on year.

Apartment rental prices in Ajman, Ras Al Khaimah and Sharjah all in decrease

Ajman apartment rent prices registered a decrease in April 2018. Prices decreased 0.44 per cent month on month and also decreased 5.97 per cent year on year. Ras Al Khaimah apartment rent prices registered a decrease in April 2018. Prices decreased 1.38 per cent month on month and also decreased by 8.14 per cent year on year. Sharjah apartment rent prices registered a decrease in April 2018. Prices decreased by 0.88 per cent month on month and 4.91 per cent year on year.

Ajman offers a higher gross rental yield than Sharjah and Ras Al Khaimah

Gross rental yield for apartments in Ajman increased to 8.69 per cent when compared to the previous month (8.63).  Gross rental yield for apartments in Sharjah increased by 5.47 per cent when compared to the previous month (5.46) and in Ras Al Khaimah the yield decreased to 7.69 per cent (last month 7.89). Price-to-rent ratio for apartments in Ajman did not change and remained steady at 12.0 years. While price-to-rent ratio for apartments in Sharjah increased to 18.7 years from 18.8 years, month on month; the ratio for Ras Al Khaimah rose to 13.5 from 13.1 years.

About REIDIN UAE Residential Property Price Indices (RPPIs)

Monthly REIDIN UAE RPPIs are calculated based on moving average median prices – an approach that is widely used for indexing housing prices – which involves median of sales prices of properties in a corresponding region. The official Dubai and Abu Dhabi Real Estate Residential Sales Price Indices provided to Bank of International Settlements (BIS) by the Central Bank of United Arab Emirates (CBUAE) is designed and produced by REIDIN.

 

Source: IMPACT PORTER NOVELLI