24 October 2010

REIDIN.com Index Reveals Month-On-Month Increase In Sales Price For Small And Large Size Apartment Category During September 2010

REIDIN.com, the leading real estate information company covering emerging markets, today announced the September 2010 Sales Price Index for Dubai (SPID), part of its INDEXFocus-UAE product, an online database of proprietary real estate indices for the UAE designed to accurately track price fluctuations in the residential real estate market.
September 2010 registered an overall decline in the rates for apartments and villas, leading to a dip in both month-on-month and year-on-year levels. However, there was a sense of optimism as sale prices of apartments in the ‘50 sq metres and less’, and ‘151 sq metres and more’ categories rose moderately during the month.
According to the September 2010 data, the Sales Price Index Dubai-All Residential (SPID – All Residential) showed a 2.30% drop from the previous month. The index level also represents a year-on-year decrease of 4.86% against September 2009.
Apartment prices dropped by 2.43% while villas were cheaper by 2.40% in September 2010 compared to August 2010. Sales prices of apartments were also down in the ‘51 – 100 sq metres’, and ‘101- 150 sq metres’ categories.

Chart 1.1 Residential Price Appreciations: September 2010

Source: REIDIN.com

Rates in the ‘50 sq metres and less’ category were down by 13.37% year-on-year in September 2010. However, the month-on-month rates rose by a nominal 0.77% against August 2010.
In the ‘51 – 100 sq metres’ segment, the average nominal price fell 3.02% year-on-year, while the month-on-month levels decreased by a nominal 1.47% in September 2010.
In the ‘101- 150 sq metres’ segment, the average nominal price showed a substantial decrease of 6.15% year-on-year while the month-on-month dip was 2.43%.
Even though prices in the ‘151 sq metres and more’ category were down by a nominal 5.74% year-on-year in September 2010, the month-on-month prices registered a marginal increase of 0.86%, suggesting a possible reversal of trend.

Chart 1.2 Residential Price Appreciation: By Apartment Size September 2010

Source: REIDIN.com

The REIDIN.com SPID – All Residential dropped by 8.36 points in Q3 2010 to 167.60 basis points, a 4.75% fall from its level in Q3 2009 when it hovered around 175.96.  Even though the apartment index declined by 7.48%, the villa index increased by 0.90% in Q3 2010 against the same period in 2009.

Residential Sales Indices for Dubai Districts

RESIDENTIAL SALES INDICES

DISTRICTS

2010 Q2

2010 Q3

BUSINESS BAY

134.56

131.15

-2.54%

DOWNTOWN DUBAI

141.69

139.59

-1.49%

OLD TOWN

124.55

128.29

3.00%

DUBAI MARINA

169.68

165.97

-2.18%

JUMEIRAH BEACH RESIDENCE

243.20

233.87

-3.83%

DUBAI SPORTS CITY

104.97

108.09

2.97%

THE SPRINGS – THE MEADOWS

286.88

276.03

-3.78%

EMIRATES HILLS SECOND

208.86

201.49

-3.53%

THE GREENS

208.86

201.49

-3.53%

EMIRATES HILLS FIRST

117.52

114.09

-2.91%

JUMEIRAH LAKE TOWERS

117.18

113.52

-3.12%

INTERNATIONAL CITY

112.57

109.25

-2.95%

DISCOVERY GARDENS

98.74

95.57

-3.21%

PALM JUMEIRAH

175.95

170.72

-2.97%

PALM BINNACLE

196.28

189.71

-3.35%

PALM FRONDS

203.83

198.74

-2.49%

ARABIAN RANCHES

181.85

175.26

-3.62%

Source: REIDIN.com

Interestingly, only two of the 17 residential districts in Dubai that are taken up for computation by REIDIN.com showed positive trends. The residential sales index for Old Dubai district rose 3.0% to 128.29 during 3Q from 124.55 in 2Q 2010 while the index for Dubai Sports City rose 2.97% to 108.09 from 104.97 during the period. All other districts registered declines ranging from 1.49% for Dubai Marina to 3.83% for Jumeirah Beach Residence.

Chart 1.3 Sales Price Index Dubai (January 2003 = 100)

Source: REIDIN.com

In September 2010, the REIDIN.com Residential Sales Price Index was a mere 60.66 points (60.66%) above its base value of 100 points in January 2003. Whereas, the REIDIN.com Apartment Sales Price Index was 43.32 points (43.32%) above and the REIDIN.com Villa Sales Price Index was 184.61 (184.61%) above their base value of 100 points in January 2003.

Chart 1.4 SPID – All Residential vs. Oil Index vs. Gold Index  

Source: REIDIN.com

In September 2010, the REIDIN.com SPID was 60.66% above its base value of 100 points in January 2003. Whereas, the oil index was 146.01% above and the gold index was 257.08% above their base value of 100 points in January 2003.
SPID are powered by raw transaction data made available exclusively through the REIDIN.com product: DUBAIFocus (Dubai real estate transaction database back to 1973 powered by an exclusive partnership with the Dubai Land Department) as well as property listings.
SPID a vital component of REIDIN.com’s INDEXFocus, a service dedicated to providing real estate indices and other benchmark data. Sales Price Index for Dubai (SPID) is launched by REIDIN.com based on the actual transactions in an exclusive partnership with the Real Estate Regulatory Agency (RERA) and the Dubai Land Department (DLD). The service provides the Dubai market with a series of indices and data sets that can help improve transparency across the market and help real estate professionals to benchmark and analyse residential price trends
To calculate indices, REIDIN.com gathers data from a number of sources including transactions for certain districts and communities in Dubai including seven citywide indices and a total of 19 district and project-based indices – Business Bay, Downtown, Dubai Marina, Jumeirah Beach Residence, and The Greens, among others. This provides an accurate sampling of the larger Dubai housing market picture.

About REIDIN.com (www.reidin.com )
REIDIN.com is an online information company providing a range of intelligence products dedicated to meeting the unique requirements of real estate market professionals interested in Emerging markets.
REIDIN.com provides hard–to-find proprietary business news, analysis, research, data and intelligence with online tools and services that enable real estate professionals to enhance their understanding of emerging markets such as United Arab Emirates, China, India, Vietnam, Singapore, Malaysia, Russia, Saudi Arabia, Kuwait, Turkey, Poland, Bulgaria, Romania, Hungary, Brazil, Argentina and more.
REIDIN.com services are used by investors, fund managers, developers, consultants, researchers, valuation experts, construction and project managers, occupiers, as well as many others who are interested in monitoring and understanding the market trends and business challenges relevant to them in real estate markets.
Moreover, to cater to the specific demands of Dubai’s dynamic property market, REIDIN.com has teamed up with the Dubai Land Department to establish DUBAIFocus, the first exclusive online information product tracking real estate deals and transactions in Dubai. DUBAIFocus – which has data from as far back as 1973 – provides daily information on all types of land, villa, and flat deals (sales, mortgage, lease, grant, inheritance, etc.) in Dubai.

INDEXFocus – A REIDIN.com Product
INDEXFocus is an online information service for real estate professionals to monitor and analyze residential house price data, with analytical tools to perform multiple market comparisons.
Available for Turkey (7 cities and composite index) and UAE (Dubai for the moment, Abu Dhabi is coming soon) INDEXFocus is an essential resource for professionals tracking real estate markets.
INDEXFocus-UAE allows access to a comprehensive database of REIDIN.com’s proprietary REAL ESTATE INDICES and tools to measure the residential property market trends in the UAE.
Currently available for Dubai city, main districts and master projects, INDEXFocus-UAE provides the first reliable residential property benchmark and trend analysis service for Dubai:
•    Monitoring more than 30,000 properties;
•    26 timeline data series for residential sales prices;
•    7 City-wide indices, 10 Main Districts and 7 Major Communities/Projects.
Dubai Housing Price Indices are calculated based on the Dubai Land Department Land & Property Transaction Records (Powered by DUBAIFocusTM), Property Listings and Valuations. Index methodology is uniquely developed by REIDIN.com in-house.

Other REIDIN.com Products
REBIS:  Our flagship product covers 48 emerging countries – News, Research, Analysis, Projects, Malls, Macro Data, Legal, Companies, Market Data
DUBAIFocus: A very special and comprehensive intelligence service reporting on all Real Estate Transactions in Dubai registered by DLD since 1973 till today. Powered by Google Maps, analytical tools, and in depth data mining functions.
INDEXFocus: is an online information service for real estate professionals to monitor and analyze residential house price data, with analytical tools to perform multiple market comparisons.
RETAILFocus: A product delivering an ever-growing database of malls, shopping centres, tenants, projects and retail real estate deals along with retail real estate news and research reports.

For more information on REDIN.com, please contact:

Mrs. Nida Rizvi
info@reidin.com
REIDIN.com – Head Office
Concord Tower, No: 2304,
Dubai Media City, PO Box 333929 Dubai,
United Arab Emirates
Tel. +971 4 433 06 61
Fax. +971 4 360 47 88    

For Further Media Enquires please contact:

Walid El-Tigi
walid@tigipr.com

TiGi PR
PO Box 79241, Dubai, UAE
Mobile: 050-8747309
www.tigipr.com