Less than 24 hours before the opening of Cityscape Global in Dubai, the much anticipated Jones Lang LaSalle Q3 reports for the Dubai and Abu Dhabi property markets have been released. And they support recent research which supports Dubai’s continued growth.
The main headline to come from the Dubai report is that apartment sales have increased four percent year-on-year and is now just eighteen percent lower than the market peak in the third quarter of 2008.
It also states that rents are up seven percent year-on-year as of August 2012, with apartment rents up five per cent compared to August last year.
The report goes on to state that the REIDIN Residential Sale Indices show the overall residential market has seen average prices increasing 14 percent year-on-year.
While it is really important to not get blown away by positive numbers and news of strong growth, this latest report is another fillip to a market which is witnessing a sustained revival.
With all eyes on serviced hotel apartments at Cityscape Global the report also contains good news for this sector. Occupancy levels are up to 77 percent from 74 percent in the same period last year. This also means Average Daily Rates (ADR) is up too – an eight percent increase to take prices to US$ 224. This stat though is beaten by the RevPar rate which is up 13 percent over the same period in 2011, reaching US$ 172 for the year to August 2012.
As developers continue to push the hotel serviced apartments opportunities to us, this number support the pitch that this is the place to invest your property portfolio funds in the coming months and years.
It must be said here that the Abu Dhabi report by Jones Lang LaSalle is less bright, but there are shoots of growth to be found. The impression is that the Abu Dhabi market has reached, or is at least very close to reaching, its bottom prices, with any declines in small percentage figures.
On a brighter note, the results of the Abu Dhabi Economic Outlook report for 2012-2016 by the Department of Economic Development have been released. The report forecasts that Abu Dhabi’s real GDP will grow by 3.9% during 2012, before expanding more rapidly (by 5.7% pa) between 2013 – 2016, with the non-oil sector being the major contributor to this future growth.
The Abu Dhabi hotel sector is also seeing an upturn with more than 1.3 million guests visiting the capital during the first seven months of 2012, representing a seven percent increase over the same period in 2011.
All in all this is a good boost ahead of three packed days of business and announcements at Cityscape Global. We will be there throughout the exhibition with news and reviews of the Dubai property market.
Please leave us your thoughts and comments on the current state of the industry, what your predictions are for the rest of the year and all things Cityscape. We look forward to hearing from you.