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Kailash NagdevManaging Director - MENA
GCC Real Estate Investor Sentiment
Understanding the investor mindset: Building
spaces with your future investor in mind
Who did we speak to?
Home buyers and investors
in the GCC
Have invested or are intending to invest in the GCC
Respondent profile.
23%
39%
30%
8%
Up to AED 14,999
AED 15,000 to AED 29,999
Above AED 30,000
Prefer not to say/ DK
Net Monthly Household Income
All respondents currently own a property or are willing to buy a property in the next year.
46%
38%
16%
UAE
Saudi Arabia
Others
Country of residence
20%
50%
22%
8%
GCC nationals
Asian Expats
Arab Expats
Westerners & Others
Nationality group
54%Are looking to
invest in the GCC
4
Where are people most likely to invest?
54%
12%20% 19%
13%
GCC Levant North Africa Asia Other
Globally
The UAE remains the most appealing country for real estate investment in the Middle East.
UAE
2017
2016
63%
12% 10%
Saudi ArabiaEgypt
68%
10% 6%
Dubai is the most appealing city for real estate investment in the Middle East.
2017
2016
Dubai Abu Dhabi Mecca
69%65%
7%5%
9%5%
On average, consumers interested in the GCC market have more money to invest in real estate.
38%
35%
13%
5%
3%
7%
Less than USD 200,000
USD 200,001 – 500,000
USD 500,001 – 1 Million
USD 2 – 3 Million
Above USD 3 Million
Don’t know
Average global budget Average GCC budget
27%
42%
17%
7%
4%
4%
Less than USD 200,000
USD 200,001 – 500,000
USD 500,001 – 1 Million
USD 2 – 3 Million
Above USD 3 Million
Don’t know
Average: USD 561,000 Average: USD 717,000
14%13% 12%
11% 11%9%
11%
9% 9%8%
13%
10%
State of localeconomy
Lack of trust inbrokers/
developers
Security in yourmarket ofinterest
CurrencyFluctuations
State of theglobal economy
Discouraginginvestment
laws
2017 2016
However, there are macro-economic factors of concern when investing in real estate.
In 2016, falling oil prices was among the highest concerns (13%)
67%
Saudi Arabia
Respondents expect residential propertysales prices to decline in the year to come.
50%
UAE
44%
Other GCCcountries
Average: 10% Average: 3% Average: 2.6%
2017
2016 45% 47% 43%
Expected price movement among those interested in investing in the GCC.
Sales
24%
13%
57%
5%
Increase
No change
Decrease
Don't know
22%
14%
61%
3%
Increase
No change
Decrease
Don't know
Rental
Average decrease: 6% Average decrease: 6%
70%
Saudi Arabia
Similarly, residential property rental prices are expected to decline in the GCC in the coming year.
54%
UAE
49%
Other GCC countries
Average: 3.5% Average: 3.8%
2017
2016 35% 42% 41%
Average: 11%
Two bedroom apartments are the
most popular type of property.
Among GCC residents interested in investing in the GCC
5%
15%
23%
19% 20%19%
Studio One bedapartment
Two bedapartment
Three bed plusapartment
Villa – up to 4 bedrooms
Villa – 4+ bedrooms
Residential properties in the Downtown /City Center are the most sought-after.
33%Stand alone
residential properties in Downtown/
City Center
Saudi Arabia residents (46%)
33%Gated communities in the City that host
commercial and retail spaces
UAE residents (38%)
Value for money, quality and accessibility are the most important criteria when selecting a residential property.
Value for money
House qualityEasy access to
highway
Nearby amenities are crucial when consumers are evaluating their property location.
41% 40%
33% 32%
Educational facilities(schools)
Healthcare facilities(hospitals)
Grocery stores Place of work/business
Respondents interested in investing in the GCC specifically.
Availability of affordable units
Access to reliable brokers
Access to data comparing properties
Availability of smart or energy efficient
properties
Lack of affordable properties, however, is still perceived to be a clear gap in the current market.
What’s missing from the Real Estate market?
Expo 2020 is believed to result in a positive impact on the UAE real estate market.
62%It will
increase supply of
residential properties
in new areas
46%It will
increase availability
of affordable residential properties
66%It will
increase real
estate buyer
interest
Emaar Properties tops the list of the healthiest real estate brands in the UAE.
38.8
18.714.9
11.7 10.0
Index Score Real Estate Brands (H1 2017)
Index is a single composite score of Impression, Reputation, Quality, Value, Satisfaction and Recommend
H12017 Base = 2834
37.6
18.7
13.0 11.8 10.7
Buzz Score (H1 2017)
Which brands have you heard something positive or negative about in the news, through advertising or word of mouth.
Brands with the highest average Buzz scores in H1 2017, Buzz is a net score of those who have heard positive news about the brand minus those of who have negative news about the brand in the past two weeks
H12017 Volume = 2834
Which brands have you seen an advertisement for in the past two weeks?
41.8
30.6
22.2
16.813.3
Ad Awareness (H1 2017)
Ad Awareness is the % of respondents who have seen an Ad from the brand in the past two weeks
H1 2017 (January till June): Volume = 2834
Does this brand represent good quality or poor quality?
49.2
24.2
16.6 14.3 11.7
Quality (H1 2017)
Value for money is a net score of % of respondents who believe brand offers good quality % of respondents who believe brand offers poor Quality
H1 2017 (January till June): Volume = 2834
Is this brand good value for money or poor value for money?
30.0
16.011.7 11.7 10.5
Value for Money (H1 2017)
Value for money is a net score of % of respondents who believe brand offers good value for money minus % of respondents who believe brand offers poor value for money
H1 2017 (January till June): Volume = 2834
When you next make a purchase, which brands would you consider?
30.6
17.214.2 14.0
10.3 9.8 8.5
Purchase Consideration (H1 2017)
Index is a single composite score of Impression, Reputation, Quality, Value, Satisfaction & Recommend
H1 2017 (January till June): Volume = 2834
