UAE Real Estate Market Outlook to 2013

  • February 2012
  • -
  • Ken Research Private
  • -
  • 50 pages

Executive Summary

The report titled “UAE Real Estate Market Outlook to 2013” discusses in details various aspects of the UAE’s real estate market with the focus on the prevalent competition amongst Dubai, Abu Dhabi and the areas of Northern Emirates. The report covers the comprehensive analysis on the market size of the real estate sector in UAE on the basis of supply and contribution of the real estate sector to the economy of the country, market segmentation, competitive landscape and company profiles of major developers operating in UAE. The report also entails the SWOT analysis of the real estate sector in UAE. The future projections and outlook provide an insight on the future growth drivers and challenges in the real estate sector of UAE.
The real estate sector In UAE has registered a marginal recovery in the year 2010. The demand for real estate properties have increased, especially in the residential segment of the market in the affordable housing units on account of the reviving economy and increasing employment. In addition, the marginal fall in the prices or rental rates have once again led the buyers to enter in the market but with a cautious attitude.
The real estate market in UAE has been significantly dominated by the Northern Emirates with a market share of ~% in 2010. This share has been contributed majorly by the real estate developments in the cities such as Sharjah, Ajman, Umm Al Quwain and Ras Al Khaimah (RAK).
The Dubai real estate market follows the Northern Emirates, with a share contribution of ~% in 2010 and with several real estate development projects in the pipeline. Moreover, an increasing demand for affordable housing units and the reviving economy has resulted in the marginal growth of the real estate market in Dubai.
Abu Dhabi, which contributed around ~% of the real estate market in UAE in 2010, suffered a setback due to the higher prices and rental rates as compared to other neighboring cities in the UAE.
In 2010, a strong demand for affordable residential properties from the low and the middle income segment of the population was recorded across Dubai. Although the market in 2010 has showcased signs of recovery but uncertainty still prevails on the investor’s side as people continue to be risk averse. The declining rental rates of apartments across Dubai have made the availability of properties at competitive rates, due to which landlords and owners are further declining their rates than the prevailing one in order to avoid the loss due to high vacancy rate. Although the prices of villas and apartments in 2010 fell by ~% and ~% respectively but the sales remain unaffected for these segment of the residential market. Demand majorly flowed for affordable flats in the Emirate which constituted around ~% of the transactions in 2010.

The office segment of the real estate market contributed around ~% to total the real estate market in Dubai 2010. The office segment was closely followed by the hotel segment with ~% market share and, has been primarily driven by the inbound tourists. This inflow of tourists has increased the requirement of hotel rooms in the Emirate. Similarly, the retail real estate market which contributes ~% in 2010 has been driven by the foreign tourists those who visit the city for the purpose of shopping.
The Abu Dhabi real estate market has recorded a considerable increase in the supply of real estate over the years. The real estate market supply has increased from ~thousand square meters of GLA in 2005 to ~ thousand square meters in 2010 at a CAGR of 6.4%. This growth was majorly due to an increase in the supply of office, retail and hotel spaces. Moreover, a considerable growth in the population has resulted into higher demand for residential properties in the city.
In 2010, the rental rates of apartments and villas declined in almost all the cities of the Northern Emirates. The apartment rental rates (including one, two, three and studio apartments) in Sharjah declined by ~, ~% in Ras Al Khaimah (RAK) and ~% in Fujairah. The market in Ajman faced a decline in the apartment rental rates as tenants opted to shift to Sharjah due to lower rental rates as compared to Ajman, as result the residential real estate market in Ajman remained under pressure in 2010. Additionally, Umm Al Quwain (UAQ) turned out to be the most economical emirate in 2010, with an average monthly rental of USD 6,805 per annum. The office real estate market remained affected and over supplied due to the economic slowdown and weak demand. Following to which, the Sharjah Executive Council (SEC) in the latter half of 2010, passed a new decree under which landlords were allowed to convert their residential properties to office premises.
A remarkable improvement have been noticed in the office market of Sharjah from Q4 of 2010- Q1 of 2011 as rental rates of offices spaces increased due to up-gradation of commercial buildings and better business access. The office rents have further increased from USD ~ to USD ~ per square meter per annum. The rental rates of retail buildings move towards stability from USD ~ to USD ~ per square meter on the Corniche and USD ~ to USD ~ per square meter per annum in Al Taawun Road. The Ajman studio and one-bed room apartment leasing market continued to remain under pressure in Q2 of 2011 due to the affordability and easy availability of two and three bed apartment. Additionally, the market in Ras Al Khaimah and Fujairah have witnessed some stability in the rental rates in Q2 of 2011, while the residential market in Umm Al Quwain showcased no activity due to absence of fresh developments.
UAE real estate market is highly fragmented and competitive with about ~ brokers in Dubai alone currently listed by Real Estate Regulatory Authority (RERA). Dubai Holdings is the largest real estate developer in the UAE with a market share of ~% in 2010 and revenue of USD ~ billion.

Key Topics Covered in the Report:
- The market size of the real estate sector in UAE on the basis of total supply and the contribution of the sector to the GDP of the economy, 2005-2010.
- The market size of the real estate sector in Northern Emirates, Dubai and Abu Dhabi on the basis of total supply of real estate spaces, 2005-2010
- Market segmentation of the UAE real estate market by residential, office, retail and hotel on the basis of total supply, 2005-2010
- Recent trends and developments of the UAE real estate market
- SWOT analysis of the UAE real estate market
- Market share of the major real estate developers operating in UAE, 2010
- Company profiles of leading developers in the real estate market in UAE
- Future outlook and projections of the supply of residential, office, retail and hotel spaces, 2011-2013
- Cause and effect relationship analysis between industry factors and expected industry prospects in the Saudi Arabia real estate market
- Historical and future forecast of several macro-economic and industry factors including Population, GDP, number of tourist arrivals, inflation and housing finance

Table Of Contents

TABLE OF CONTENTS

1. UAE Real Estate Market Introduction
2. UAE Real Estate Market Size, 2005-2010
2.1. By Revenue, 2005-2010
2.2. By Supply, 2005-2010
3. UAE Real Estate Market Segmentation on the Basis of Supply, 2005-2010
3.1. By Abu Dhabi, Dubai and Northern Emirates, 2005-2010
3.2. By Residential, Office, Retail and Hotel, 2005-2010
3.3. Dubai Real Estate Market Introduction
3.3.1. Dubai Real Estate Market Size by Supply, 2005-2010
3.3.2. Dubai Real Estate Market Segmentation by Residential, Office, Retail and Hotel, 2005-2010
3.4. Abu Dhabi Real Estate Market Introduction
3.4.1. Abu Dhabi Estate Market Size by Supply, 2005-2010
3.4.2. Abu Dhabi Real Estate Market Segmentation by Residential, Office, Retail and Hotel, 2005-2010
3.5. Northern Emirates Real Estate Market Introduction
3.5.1. Northern Emirates Real Estate Market Size by Supply, 2005-2010
3.5.2. The Northern Emirates Market Segmentation by Residential, Office, Retail and Hotel, 2005-2010
3.6. UAE Real Estate Market Trends and Developments
3.7. UAE Real Estate Market SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
4. The UAE Real Estate Market Competitive Landscape
4.1. The UAE Real Estate Market Developers’ Market Share, 2010
5. UAE Real Estate Market Future Outlook
5.1. Cause and Effect Relationship between Dependent and Independent Factors Prevailing in UAE Real Estate Market
5.2. UAE Real Estate Market Future Projections, 2011-2013
5.2.1. Residential, Office, Retail, Hotel Projected Supply, 2011-2013
6. Major UAE Real Estate Developers Profiles
6.1. Dubai Holdings
Company Overview
Financial Performance
6.2. Emaar Properties
Company Overview
Financial Performance
6.3. Sorouh Real Estate Company
Company Overview
Financial Performance
6.4. Union Properties
Company Overview
Financial Performance
6.5. Aldar Properties
Company Overview
Financial Performance
6.6. Deyaar Holding
Company Overview
Financial Performance
7. UAE Macro-Economic and Industry Factors: Historical and Projections
7.1. Population, 2005-2013
7.2. Gross Domestic Product, 2005-2013
7.3. Number of Tourists Arrivals
7.4. Real Estate Finance
7.5. Inflation, 2005-2013
8. Appendix
8.1. Market Definition
8.2. Abbreviations
8.3. Research Methodology
Data Collection Methods
Approach
8.4. Disclaimer
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LIST OF FIGURES
Figure 1: UAE Real Estate Market Size in USD Million, 2005-2010
Figure 2: The UAE Real Estate Market Size by Supply in GLA Thousand Square Meter, 2005-2010
Figure 3: UAE Real Estate Market Segmentation by Abu Dhabi, Dubai and Northern Emirates, in Percentage, 2005-2010
Figure 4: UAE Real Estate Market Segmentation by Residential, Office, Hotel and Retail in Percentage, 2005-2010
Figure 5: Dubai Real Estate Market Supply in GLA Thousand Square Meter, 2005-2010
Figure 6: Dubai Real Estate Market Segmentation by Residential, Office, Retail and Hotel on the Basis of Supply in Percentage, 2005-2010
Figure 7: The Abu Dhabi Real Estate Market Supply in GLA Thousand Square Meter, 2005-2010
Figure 8: Abu Dhabi Real Estate Market Segmentation by Residential, Office, Retail and Hotel on the Basis of Supply in Percentage, 2005-2010
Figure 9: Northern Emirates Real Estate Market Supply in GLA Thousand Square Meter, 2005-2010
Figure 10: The Northern Emirates Real Estate Market Segmentation by Residential, Office, Retail and Hotel on the Basis of Supply in Percentage, 2005-2010
Figure 11: UAE Real Estate Market Projection by Supply in GLA Thousand Square Meter, 2011-2013
Figure 12: Dubai Holdings Total Revenue in USD Million, 2006-2010
Figure 13: Emaar Properties Total Revenue in USD Million, 2006-2010
Figure 14: Sorouh Real Estate Company’s Total Revenue in USD Million, 2006-2010
Figure 15: Union Properties Total Revenue in USD Million, 2006-2010
Figure 16: Aldar Properties Total Revenue in USD Million, 2006-2010
Figure 17: Deyaar Holding Total Revenue in USD Million, 2006-2010
Figure 18: Population in Million, 2005-2013
Figure 19: Gross Domestic Product in USD Million, 2005-2013
Figure 20: Inflation in Percentage, 2005-2013
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LIST OF TABLES
Table 1: UAE Real Estate Market Segmentation by Residential, Office, Hotel and Retail in GLA Thousand Square Meter, 2005-2010
Table 2: United Arab Emirates Residential Units and Hotel Rooms Supply in Units in Thousand, 2005-2010
Table 3: Dubai Real Estate Market Segmentation by Residential, Office, Retail and Hotel on the Basis of Supply in GLA Thousand Square Meter, 2005-2010
Table 4: Dubai Real Estate Residential Supply in Units in Thousand and Hotel Rooms in Thousands, 2005-2010
Table 5: Abu Dhabi Real Estate Market Segmentation by Residential, Office, Retail and Hotel on the Basis of Supply in GLA Thousand Square Meter, 2005-2010
Table 6: Abu Dhabi Residential Supply in Units in Thousand and Hotel Rooms in Thousands, 2005-2010
Table 7: Northern Emirates Real Estate Market Segmentation by Residential, Office, Retail and Hotel on the Basis of Supply in GLA Thousand Square Meter, 2005-2010
Table 8: Northern Emirates Residential and Hotel Supply in Units in Thousand and Rooms in Thousand, 2005-2010
Table 9: The UAE Real Estate Market Developers’ Total Revenue in Percentage, 2010
Table 10: The UAE Real Estate Market Developers’ Total Revenue in USD Million, 2010
Table 11: Cause and Effect Relationship Analysis between Industry Factors and Expected industry Prospects of UAE Real Estate Market
Table 12: UAE Real Estate Market Projected Supply in GLA Thousand Square Meter, 2011-2013
Table 13: UAE Real Estate Market Projected Supply in GLA Thousand Square Meter, 2011-2013
Table 14: UAE Residential Real Estate Market Projected Supply in Units in Thousand, 2011-2013
Table 15: UAE Hotel Real Estate Market Projected Supply in No. of Rooms in Thousand, 2011-2013
Table 16: Real Estate Projects by Emaar Properties, 2011
Table 17: Real Estate Projects by Sorouh Real Estate Company, 2011
Table 18: Real Estate Projects by Union Properties, 2011

Companies mentioned
Emaar Properties, Sorouh Real Estate Company, Union Properties, Aldar Properties, Deyaar Holding

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