Financial & Operating Performance
Emirates NBD Profile
Operating Environment
Emirates NBD
6
Dubai Economic Update (3/3)
Highlights
Softness in residential real estate prices continues with apartment
prices faring better than villas
Apartment prices were down -2.8% y/y in December, compared
with -6.8% y/y in December last year. Villa prices fell -14.3% y/y in
December
Higher interest rates, declining rents and increasing supply are
likely to remain headwinds in 2018. Dubai residential real estate
prices expected to recover modestly in 2019 and rise further in
2020-2021, according to Phidar Advisory.
Residential property prices
350
300
250
200
150
100
50
0
Feb-03
Oct-03
Jun-04
Feb-05
Oct-05
Jun-06
Feb-07
Oct-07
Jun-08
Feb-09
Oct-09
Jun-10
Feb-11
Oct-11
Jun-12
Feb-13
Oct-13
Jun-14
Feb-15
Oct-15
Jun-16
Feb-17
Oct-17-
Dubai residential property prices
Strategy
-12
Financial & Operating Performance |
% y/y
63
0
Appendix
Apartments
⚫Dubai
Source: Bank of International Settlements
Dubai transaction volumes
Villas
1600
1400
1200
1000
800
600
400
-15
-18
200
Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17
Source: Phidar Advisory, Emirates NBD Research
Abu Dhabi
Apartments (LHS)
Villas (RHS)
Jan-14 Jun-14 Nov-14 Apr-15 Sep-15 Feb-16 Jul-16 Dec-16 May-17 Oct-17
Source: Phidar Advisory, Emirates NBD Research
200
180
160
140
120
100
60
40
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