Residential Market Survey Q3 2015

Cavendish Maxwell Residential Market Survey Q3 2015

Results Overview1

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Cavendish Maxwel l Residential Market Survey

We recently established the Cavendish Maxwell Residential Market Survey as an initiative intended to increase market awareness across the sector. On a quarterly basis we invite all reputable agents to take part in the survey and provide their insight on the previous quarter, as well as their outlook on market movements for the following quarter. The survey is composed of 10 to 15 questions addressing sales and rents for apartments, villas and townhouses in the Dubai market, and gives agents the opportunity to add comments based on their experience throughout the quarter. Agents, being at the forefront of property market intelligence, have a unique perspective as they deal with buyers and sellers on a daily basis. Cavendish Maxwell has produced this full report of the survey results to be shared with each participating agency providing Q3 2015 agent experience and market sentiment for Q4 2015.

Looking back - Q3 2015

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Sales •   46% of agents recorded a decrease in new buyer enquires throughout Q3 2015, whilst 29% said they experienced an increase.

•   The majority of agents, 46% had experienced an increase in seller instructions in Q3 from Q2 2015. •   43% of agents surveyed said the number of agreed sales in Q3 2015 had remained the same as the previous quarter.


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Rents •   43% of agents surveyed responded that tenant demand had remained the same in Q3 2015 as the previous quarter. •   46% of agents responded that landlord instructions also remained the same throughout Q3 2015.


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Apartments •   42% of the agents surveyed responded

that apartment prices decreased by more than 5%.

Townhouses •   Much like apartments and villa prices,

46% of agents responded that townhouse prices also declined by more than 5%.

Villas •   More than 60% of agents responded

that villa prices had decreased by more than 5% throughout Q3 2015.


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Townhouses •   42% of agents surveyed said townhouse

rents have remained the same in Q3 2015.

Villas •   Whilst 38% of agents surveyed

responded that villa rents had remained the same, 35% saw prices decline by more than 5%.

Apartments •   42% of agents surveyed responded that

apartment rents had remained the same in Q3 as the previous quarter.


Looking forward - Q4 2015

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Market sentiment - sales •   Agents remain optimistic for the Q4 2015, predicting an increase in buyer enquiries as well as seller instructions.

•   The majority of agents predicted an increase in the number of agreed sales following the slower summer months.


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Market sentiment - rents •   Over 60% of agents have predicted tenant demand and landlord instructions to remain the same throughout Q4 2015.


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Market movement - sales outlook •   Whilst the majority of agents surveyed have predicted apartment prices will remain the same throughout Q4 2015, the majority have

predicted further drops of up to 5% in townhouse and villa prices.


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Market movement - rents outlook •   Most of the agents surveyed have predicted that rental rates will remain the same across apartments, villas and townhouses.


Predictions vs real ity

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We looked back at our Q2 survey to see how agent predictions on market movement for Q3 2015 compared to the reality.

Market outlook and sentiment Q4 2015

Sales •   Whilst most agents, approximately 40%, have predicted

apartment prices to remain the same, they have predicted drops of up to 5% in townhouse and villa prices in Q4 2015.

•   The sale market sentiment remains optimistic with agents predicting and increase in buyer enquiries, seller instructions and the number of agreed sales following on from the summer and leading to the end of the year.

Rents •   The majority of agents have predicted no change in rental

rates in apartments, townhouse and villas in Q4 2015.

•   Rental market sentiment for Q4 2015 points towards a stable quarter with the majority of agents predicting that tenant demand and landlord instructions will remain the same through to the end of the year.

“we’ll review in early January!”

“the market calls it right!”

Look out for your invitation to take part in our Cavendish Maxwell Residential Market Survey Q4 2015 and consequently for the reports that follow to discover how your market predictions compare to the reality!


CavendishMaxwell.com T: +971 (0) 4 453 9525 E: [email protected] 2205 Marina Plaza Dubai Marina P.O. Box 118624 Dubai United Arab Emirates

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Documents

Residential Market Survey Q3 2015