FOR THE PRIVILEGED FEW massive diversions are currently being worked numerous hotels were also delivered. To name cannot directly enter into an agreement with out. Once completed the SZR flyover will rise 8 a few Marriott Hotel & Marriott Executive tourists for short term lease, they will now Mashreq meters to allow navigation to the vessels round Apartments in Al Jaddaf, Pullman Hotel in JLT, have to list the property with a licensed the clock. Hyatt Palace in Deira, Sofitel Dubai Downtown, holiday home operator and lease it to the The hospitality sector has been more vibrant JW Marriott Marquis second tower, and tourists. both in Abu Dhabi & Dubai. The “Mall of the InterContinental Marina were delivered. Property World” announced recently is the talk of the To streamline the buoyant hospitality sector, town. Once the project is completed the Mall the Dubai’s Department of Tourism & Wealth Gauge. will be a city in itself which will include 100 Commerce Marketing (DTCM) has introduced hotels. Looking at the Occupancy rates, new laws on short term leasing. A homeowner Volume 12 | August 2014 Economic Overview As per National Bureau of Statistics, the current oversupply of oil in global markets and May. Top three contributors to the increase in economic growth in UAE for 2013 stands at the limited growth in oil production. On a the index for the first half of 2014 are 5.2% which was well supported by Trade & broader scale UAE’s economy is well Education (+4.47%), Furniture and Household Tourism, Hospitality and Real Estate. 70% of supported by strong economic fundamentals. Goods (+3.73%) and Housing (+2.32%). The real Gross Domestic Product growth has come Tourism has been a major sector accounting average increase of prices were recorded at from the non-oil based sector. One of the for about 20% of GDP in 2013 and is 1.91% as compared with the first half of year factors that led to GDP improvements in 2013 expected to grow anywhere between 7% to 2013. ( Source: Based on data released by was due to the development of oil output and 9% through 2020. National Bureau of Statistics) good and stable oil price levels in the previous For the month of June 2014 the overall Infrastructural Investments and spendings on years. Central Bank expects the economic Consumer Price Index (CPI) has reached account of Expo 2020 is on the rise and are in growth in UAE to remain strong which will be 119.75, (indexed at 2007 = 100), the overall line with the spending plans. The work on the driven by non - oil based economy given the CPI has increased by 0.41% as compared to prestigious Dubai Canal Project has begun, 01 Mashreq Property Wealth Gauge. massive diversions are currently being worked numerous hotels were also delivered. To name cannot directly enter into an agreement with out. Once completed the SZR flyover will rise 8 a few Marriott Hotel & Marriott Executive tourists for short term lease, they will now meters to allow navigation to the vessels round Apartments in Al Jaddaf, Pullman Hotel in JLT, have to list the property with a licensed the clock. Hyatt Palace in Deira, Sofitel Dubai Downtown, holiday home operator and lease it to the The hospitality sector has been more vibrant JW Marriott Marquis second tower, and tourists. both in Abu Dhabi & Dubai. The “Mall of the InterContinental Marina were delivered. World” announced recently is the talk of the To streamline the buoyant hospitality sector, town. Once the project is completed the Mall the Dubai’s Department of Tourism & will be a city in itself which will include 100 Commerce Marketing (DTCM) has introduced hotels. Looking at the Occupancy rates, new laws on short term leasing. A homeowner Real Estate Sector Highlights As per National Bureau of Statistics, the current oversupply of oil in global markets and May. Top three contributors to the increase in • The Dubai Land Department (DLD) has recently announced that the Real Estate transactions increased by 4.6% to economic growth in UAE for 2013 stands at the limited growth in oil production. On a the index for the first half of 2014 are AED 113 billion in the first half of 2014 as compared to AED 108 billion for the same period in 2013. DLD has also announced 5.2% which was well supported by Trade & broader scale UAE’s economy is well Education (+4.47%), Furniture and Household that the Property prices has seen annual price growth slip from 11.7% in Q1 2014, to 6.3% in Q2 2014, however DLD expects Tourism, Hospitality and Real Estate. 70% of supported by strong economic fundamentals. Goods (+3.73%) and Housing (+2.32%). The the prices to strengthen during the second half of the year. real Gross Domestic Product growth has come Tourism has been a major sector accounting average increase of prices were recorded at • The Dubai Real Estate Institute (DREI) – the educational arm of DLD has added six new courses to its training programme from the non-oil based sector. One of the for about 20% of GDP in 2013 and is 1.91% as compared with the first half of year to help improve knowledge on the Dubai Real Estate market for all stakeholders. factors that led to GDP improvements in 2013 expected to grow anywhere between 7% to 2013. ( Source: Based on data released by was due to the development of oil output and 9% through 2020. National Bureau of Statistics) • Various new Projects were launched by the Master Developers. Emaar announced the launch of Opera Grand at the Opera good and stable oil price levels in the previous For the month of June 2014 the overall Infrastructural Investments and spendings on District at Downtown Dubai. Dubai Properties has launched Manazel Al Khor in Culture Village; Rahat Villas at Mudon and years. Central Bank expects the economic Consumer Price Index (CPI) has reached account of Expo 2020 is on the rise and are in 200 new units at Remraam. growth in UAE to remain strong which will be 119.75, (indexed at 2007 = 100), the overall line with the spending plans. The work on the • Private Developers continue to join the bandwagon, Damac has launched 34 premium Fendi Villas at Akoya Drive. driven by non - oil based economy given the CPI has increased by 0.41% as compared to prestigious Dubai Canal Project has begun, Two Hotel Apartments, The Vantage & The Constella, were launched in Jumeirah Village. Danube has launched its first project Dreamz which would consist of 171 townhouses in Al Furjan. 02 Mashreq Property Wealth Gauge. Mashreq Property Wealth Gauge At Mashreq we have been tracking the property prices by indexing them community wise on a scale of 100. On the basis of the Mashreq Property Price Indexing, the percentage change over a period of time has been indicated both for Apartments and Villas for major communities. Change in last 3 Change in last Mashreq Property Price Index as of end July 2014 Change YTD Months 12 Months % % Per % % change change Location Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Change Change Change Change Sq. Ft change change from from (AED) Aug-13 Jan-14 Arabian Ranches 81 82 83 85 86 84 84 85 85.3 85.1 84.8 84.2 82.7 -1.8% -2.8% 1.4% -1% 1344 Burj Khalifa Tower 50 53 56 56 56 53 53 53 52.8 53.4 53.3 53.3 53.1 -0.5% -0.7% 0.5% 1% 3769 Burj Dubai Downtown 90 92 96 97 100 102 103 104 104.4 104.4 104.6 105.2 105.2 0.0% 0.8% 13.8% 2% 2868 Business Bay 58 59 62 65 67 70 72 73 73.6 74.3 74.9 74.5 74.7 0.2% 0.5% 25.7% 4% 1382 DIFC 44 46 48 48 48 51 51 54 54.9 55.2 55.2 55.8 55.8 0.0% 1.0% 20.1% 8% 1869 Dubai Land 67 69 70 72 73 74 75 76 76.8 76.6 77.4 77.5 76.4 -1.4% -0.2% 11.3% 2% 977 Dubai Marina 70 72 75 76 77 79 82 82 83.5 83.4 83.4 82.9 82.9 0.0% -0.6% 15.5% 2% 1742 Greens 62 64 66 69 71 70 71 72 73.4 73.4 74.0 74.2 72.4 -2.5% -1.3% 13.4% 2% 1375 International City 54 59 60 61 64 67 70 73 75.0 75.7 75.7 76.4 75.7 -0.9% 0.0% 28.2% 8% 681 Jumeirah Beach 68 71 73 74 75 77 77 78 79.1 79.4 79.1 82.0 82.0 0.0% 3.2% 15.6% 6% 1619 Residences Jumeirah Lake Towers 51 53 55 56 56 57 58 59 61.2 61.9 61.9 62.3 62.1 -0.3% 0.3% 17.3% 7% 1041 Jumeirah Islands 91 93 95 97 98 97 98 98 98.5 98.5 98.6 98.6 98.1 -0.5% -0.3% 5.3% 1% 1816 Jumeirah Park 71 78 82 85 85 82 82 82 82.0 81.2 80.7 79.4 78.9 -0.7% -2.9% 1.7% -4% 1252 Jumeirah Village 87 91 97 98 101 112 111 113 114.1 113.8 114.1 114.0 113.0 -0.9% -0.7% 24.9% 2% 1017 Old Town Burj Dubai 68 69 71 72 76 74 75 75 76.8 76.8 76.8 76.8 76.8 0.0% 0.0% 10.8% 2% 2188 Palm Jumeirah 108 113 116 119 120 119 120 121 125.7 126.3 126.3 127.4 125.6 -1.5% -0.6% 10.6% 4% 2794 Springs/Meadows 76 76 79 80 82 81 83 84 84.8 84.5 84.0 83.5 81.8 -2.0% -3.2% 7.0% -2% 1431 03 Mashreq Property Wealth Gauge.