Dubai Office, Residential and Hospitality MarketView Q3 2016
The Emirates NBD UAE Purchasing Managers’ Index (PMI) report, which measures the health of the country’s non-oil private sector, indicated a further softening of positive performance during the month of September. The index has now fallen from 55.3 in July, reaching 54.7 in August and 54.1 in September. Whilst the reading still reflects positive growth, it underlines the presence of challenges in the economy, including the modest employment creation reading.
According to the International Monetary Fund (IMF), the UAE’s GDP growth will fall to 2.4% during 2016, down from 3.9% in 2015. However, Dubai is expected to outperform the UAE average, by posting growth of around 3.7% in 2016, up from 3.6% during 2015.
Average residential rental and sales rates continue to fall across Dubai, but performances are highly fragmented by location. Sales rates declined less than 1%, whilst rental rates fell 1%.
According to STR Global, average hotel occupancy rates in Dubai dropped around 0.5% year-to-date as compared to the same period last year.