2020 Residential Capital Values October The VPI – Residential Capital Values for Dubai as of October 2020 stood at 65.6 points, dipping just 0.7% monthly, the lowest rate of decline in 16 months. This rate of decline has continued to decelerate from 1.9% during the April-June movement restrictions. Annually, residential capital values declined 14.4%. Citywide capital values are yet to stabilise, as the downward trend continued, albeit, at a slower pace.

While Q3 witnessed a V-shape trend in sales transactions, the first month of Q4 registered a 33.7% decline in off-plan sales and 6.8% decline in ready home sales when compared to the previous month.

All properties monitored by the VPI saw capital values decline by as much as 1.3% monthly, examples of which was apartments in and . Given the high demand due to record low prices, larger villa capital values demonstrated higher resilience as compared to apartments. The least registered capital value declines were found in , The Meadows, Hills and Palm .

61% of October’s cash-based sales transaction volumes were towards ready homes, as off-plan sales have slowed due to limited project launches. Properties developed by Emaar, Nakheel, Sobha, Dubai Sports City, and Damac topped the sales charts overall. Top off-plan locations transacted during October were in Sobha Hartland, Harbour and Jumeirah Village. Most transacted ready homes were , Jumeirah Village, and International City. 65.6 ValuStrat Price Index - Dubai Residential Capital Values Base: Jan 2014=100 -0.7% Monthly Change -14.4% Annual Change

AED1,536,020 Weighted Average Capital Value

AED832 Weighted Average Value per SQFT

1 | Residential Capital Values - October 2020 Dubai Average Residential Prices AED per Square Foot Annual Average

1,950 2000

1,380 1500

1000 898 888

500

0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: 2006-2009 Market Listing, 2010-YTD Dubai Land Department (excluding mortgage and off-plan transactions)

ValuStrat Price Index Dubai - Residential Capital Values Base:Jan 14=100

112.9 120

100

80 65.6

60

40

20

0 JAN APR JUL OCT JAN APR JUL OCT JAN APR JUL OCT JAN APR JUL OCT JAN APR JUL OCT JAN APR JUL OCT JAN APR JUL OCT

2014 2015 2016 2017 2018 2019 2020

Source: ValuStrat

www.valustrat.com/vpi | 2 ValuStrat Price Index – Dubai Residential Capital Values October 2020

Typical Villas

Location VPI Capital Value (AED) Monthly Change Annual Change

Al Furjan 60.1 3,033,065 -0.5% -14.7%

Arabian Ranches 59.4 2,653,200 -0.4% -13.2%

Emirates Hills 82.0 28,730,000 -0.5% -14.0%

Jumeirah Islands 57.5 4,623,500 -0.6% -15.0%

Jumeirah Park 62.9 3,662,230 -0.6% -14.2%

Jumeirah Village Villas 62.0 1,543,583 -0.9% -16.1%

Meadows 60.4 3,519,625 -0.5% -13.4%

Palm Jumeirah Villas 90.2 10,650,000 -0.5% -13.2%

The Lakes 66.0 2,764,500 -0.6% -14.0%

Victory Heights 63.5 4,549,796 -0.8% -14.8%

3 | Residential Capital Values - October 2020 ValuStrat Price Index – Dubai Residential Capital Values October 2020

Typical Apartments

Location VPI Capital Value (AED) Monthly Change Annual Change

Burj Khalifa 66.0 2,049,840 -1.2% -15.1%

Business Bay 72.4 860,214 -0.8% -14.7%

Discovery Gardens 64.6 309,760 -1.1% -16.9%

Downtown Dubai 64.7 1,206,835 -0.7% -15.1%

Dubai Marina 62.2 1,540,000 -0.6% -14.6%

Dubai Production City 68.9 286,925 -1.3% -16.4%

Dubai Sports City 70.3 751,540 -1.3% -15.2%

International City 61.8 295,295 -0.4% -12.3%

Jumeirah Beach Residence 64.6 1,986,165 -1.1% -15.3%

Jumeirah Lake Towers 57.7 1,312,360 -0.9% -14.1%

Jumeirah Village 64.8 589,152 -1.0% -16.3%

Motor City 77.7 1,064,390 -0.9% -15.5%

Palm Jumeirah 71.9 1,714,926 -0.9% -15.1%

Remraam 71.4 391,685 -1.0% -15.9%

The Greens 62.8 658,008 -1.0% -14.8%

The Views 68.5 1,286,420 -0.9% -14.3%

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5 | Residential Capital Values - October 2020 About

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The ValuStrat Price Index for Dubai’s office capital values is a valuation-based index constructed to represent the quarterly price change experienced by typical office space within Dubai. The ValuStrat Price Index for Dubai’s residential capital values is a valuation-based index constructed to represent the monthly price change experienced by typical residential units within Dubai. The ValuStrat Price Index for Dubai’s residential rental values is constructed to represent the quarterly rental change experienced by typical residential units within Dubai. The VPI applies weighted averages using data samples representing more than 90% of all property types across the city’s freehold locations and is built by our expert RICS Registered Valuers. Copyright © ValuStrat Consulting FZCo. 2020 This document is the property of ValuStrat Consulting FZCo Director - Commercial Valuations and must not be reproduced or transmitted in any form or by any means, without the prior written consent of ValuStrat Consulting FZCo. We welcome your constructive feedback and any corrections that may need to be made to this document. ValuStrat Consulting FZCo does not accept any liability in negligence or otherwise for any damage suffered by any party resulting from reliance on this document.

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