News

Arabtec Holding released its results for the quarter ending June, displaying a 47% decline in net profit to AED 26 million. It attributed the fall to a decline in the awards of new contracts in the construction sector in the first half of the year coupled with the completion of legacy projects in 2019.

The seasonally adjusted IHS Markit Dubai Economy Tracker Index fell from 58.4 in June to 55.2 in July. Readings above 50 signal growth in economic activity. Expectations for business activity over the next 12 months were high at the start of H2 2019, with the respective index registering the third-highest numbers on record.

Emaar Properties recorded sales for the first half of 2019 at AED 9.4 billion, up 52% from the same period in 2018, and one of the highest reported by the company in Dubai. However, net profits during the same period declined to AED 3.1 billion from AED 3.2 billion in H1 2018 on the back of higher costs.

Any interest rate reductions lower the cost of borrowing for customers, positively impacting sectors such as automotive and real estate. Customers can now avail reduced rates on loans, mortgages and credit cards.

Alreeman contract of AED 794 million awarded to Tristar Engineering and Construction, and Reflection contract worth AED 220 million awarded to Fibrex Construction.

Manzili is an online calculator that matches prospective buyers with suitable properties based on their savings and budgets. Through this initiative, the DLD aims to boost the real estate sector by making it easier than ever to find the right property.

Saudi Arabia’s real non-oil growth is expected to strengthen to 2.9% in 2019 helped by an increase in government spending and confidence, according to the IMF. However, real GDP growth is expected to slow to 1.9% as real oil growth weakens to 0.7% with the implementation of the OPEC+ oil production agreement.

The initiative is designed to increase transparency, streamline real estate transaction processes, reduce transaction time, and facilitate strategic partnerships between public and private sectors.

Most of the property deals took place in Sharjah City, with 1,704 sales transactions in 91 areas, out of 1,893 sales deals. The most popular areas were Muwaileh Commercial Area, followed by Al Khan and Al Nahda.

Average apartment prices in Dubai declined 15.1% in Q2 2019 from Q2 2018, and villa/townhouse prices declined by 14.7%. Rental declines for apartments in Dubai averaged 12.5% and rents for villas/townhouses similarly fell 12.6% in Q2 2019 from a year ago.

The average house price in June was AED 2.46 million, with apartment and villa prices marginally declining month-on-month to AED 1.67 million and AED 4.35 million, respectively.

Al Reem Island proved to be the most sought-after location by investors, recording transactions worth AED 4.37 billion. It was followed by Al Reef with deals worth around AED 1.8 billion, and Yas Island with around AED 1.6 billion worth of transactions.