VPI – Residential Capital Values for Dubai As of February 2020 Stood at 74 Points, Dipping 0.8% Since January, -10.1% Annually

2020 Dubai Residential Capital Values February The VPI – Residential Capital Values for Dubai as of February 2020 stood at 74 points, dipping 0.8% since January, -10.1% annually. The second month of 2020 continued the trend of capital values declining less than 1%, a trend which began in June last year. The weighted average capital value was AED 941 per square foot.

All properties monitored by the index saw monthly capital values marginally decline, the highest of which was Discovery Gardens with -1.5%, and the lowest registered capital value decline was -0.6% in Jumeirah Lake Towers. The transacted sale price per square foot fell below AED 1,000 currently at AED 932 per sq ft, not too dissimilar to average rates eight years ago, a time when the market initiated a recovery cycle.

February 2020 saw off-plan sales transaction volume double when compared to January. Ready homes sales volume grew 7% month on month, representing 32% of all residential cash sales. Properties developed by Emaar, Damac Properties, Dubai Properties, Danube Properties, Nakheel, and Meraas, topped the sales charts overall. Top off-plan locations transacted during February were in Downtown Dubai, Dubai Creek Harbour, Jumeirah Village, Business Bay, and Liwan. Most transacted ready homes were in Jumeirah Village, Dubai Marina, Jumeirah Beach Residence, Palm Jumeirah, International City, Downtown Dubai, and Jumeirah Lake Towers. 74.0 ValuStrat Price Index - Dubai Residential Capital Values Base: Jan 2014=100 -0.8% Monthly Change -10.1% Annual Change

AED1,733,878 Weighted Average Capital Value

AED941 Weighted Average Value per SQFT

1 | Residential Capital Values - February 2020 Sales Residential Prices (AED/SQFT) 2006 YTD

1,950 2000

1,380 1500

898 1000 932

500

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

Source: 2006-2009 Market Listing, 2010-YTD DLD (Ready Cash Sales)

VPI Residential Capital Values 2014 YTD

112.9 120

100

80 74.0

0 Jul Jul Jul Jul Jul Jul Oct Oct Oct Oct Oct Oct Jan Jan Jan Jan Jan Jan Jan Apr Apr Apr Apr Apr Apr Jun Jun Jun Jun Jun Jun Dec Dec Dec Dec Dec Dec Feb Feb Feb Feb Feb Feb Feb Sep Sep Sep Sep Sep Sep Nov Nov Nov Nov Nov Nov Aug Aug Aug Aug Aug Aug Mar Mar Mar Mar Mar Mar May May May May May May

2014 2015 2016 2017 2018 2019 2020

Source: ValuStrat, Base:Jan 2014=100

www.valustrat.com/vpi | 2 Typical Villas

Location VPI Capital Value (AED) Monthly Change Annual Change

Al Furjan 68.3 3,443,555 -0.9% -10.7%

Arabian Ranches 66.3 2,958,720 -0.8% -11.1%

Emirates Hills 92.2 32,300,000 -0.9% -8.7%

Jumeirah Islands 65.4 5,252,296 -0.9% -10.5%

Jumeirah Park 71.0 4,138,970 -0.8% -9.9%

Jumeirah Village Villas 70.4 1,751,542 -1.4% -13.3%

Meadows 67.7 3,945,785 -0.8% -9.0%

Palm Jumeirah Villas 100.8 11,900,000 -0.8% -7.6%

The Lakes 74.3 3,107,880 -0.9% -10.3%

Victory Heights 72.0 5,156,090 -1.0% -11.2%

3 | Residential Capital Values - February 2020 Typical Apartments

Location VPI Capital Value (AED) Monthly Change Annual Change

Burj Khalifa 74.9 2,325,960 -1.0% -11.1%

Business Bay 82.2 976,030 -0.7% -11.1%

Discovery Gardens 74.2 355,740 -1.5% -14.0%

Downtown Dubai 73.4 1,370,830 -0.9% -9.2%

Dubai Marina 70.3 1,738,880 -0.8% -10.2%

Dubai Production City 79.0 328,841 -0.9% -13.9%

Dubai Sports City 80.2 857,890 -0.8% -9.0%

International City 68.5 327,470 -0.7% -9.3%

Jumeirah Beach Residence 73.5 2,260,582 -1.0% -10.4%

Jumeirah Lake Towers 65.1 1,479,200 -0.6% -10.4%

Jumeirah Village 74.4 675,792 -1.0% -10.9%

Motor City 88.8 1,219,240 -0.7% -10.4%

Palm Jumeirah 81.5 1,947,282 -0.9% -11.6%

Remraam 81.7 448,210 -0.9% -11.3%

The Greens 71.3 746,928 -0.8% -10.8%

The Views 77.1 1,447,550 -1.0% -10.9%

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5 | Residential Capital Values - February 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 Director - Commercial Valuations 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 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. Director & Head of Industrial Consulting