Home Sentiment Survey - H2 - 2021

Home Sentiment Survey – H2 – 2021

February 17, 2022

Sentiment for the coming 12 months remains very positive in the homeowner market; and increasing numbers of renters expect their rent to go up during 2022

• Only 3% of homeowners surveyed expect a decline in prices, with 19% expecting prices to remain the same and 78% expecting prices to increase in the next 12 months
• 31% of renters surveyed expect their rent to increase in the coming year, up from only 2% six months ago

UAE RESIDENTIAL HOMEOWNERS MARKET

UAE homeowners remain bullish on the country’s residential market

• Only 3% of homeowners in the UAE who responded to our survey expect prices to decline, by between 0 and 5%
• 16% of all respondents expect prices to rise by at least 10%, 31% by between 5 and 10%, and 31% by 0 to 5%; making up 78% of all respondents

Sentiment towards the market has improved consistently over the past 18 months

• As of H1 2020, only 11% of respondents were expecting prices to increase over the coming year. The proportion of respondents reporting positive sentiment has steadily increased ever since: 43% as of H2 2020, 69% as of H1 2021 and now 78%

A smaller proportion of homeowners surveyed expect to put their home on the market in the next 12 months: 13% as of H2 2021, versus 26% six months ago and 22% one year ago

UAE RESIDENTIAL RENTERS MARKET

• The rental market was significantly stronger in the last 6 months than had been signalled by our previous biannual survey. At of H1 2021, only 2% of respondents reported expecting to see rent increases before the end of 2021; in actuality, 25% of respondents saw an increase in their rent
• In the coming 12 months, 31% of surveyed renters are expecting their rent to increase, with 40% expecting rent declines and 29% expecting their rent to remain the same. These findings reflect the most balanced rental market since we began our survey
• With a buoyant residential market, renters in the UAE are giving greater consideration to purchasing a home; 27% report being more likely to consider buying in 2022 than they were in 2021
• The vast majority of renters continue to see the rent they pay as either fair value (56% of respondents) or good value (19% of respondents)

What is a Home Sentiment Survey?

A Home Sentiment Survey measures consumer sentiment towards the residential property market. It allows for the creation of an index, which is derived from regular surveys of a representative sample of homeowners and renters. The survey can determine sentiment regarding buying, selling, investing in, renting of and renovating property, as well as property market conditions in general.

Why do a Home Sentiment Survey?

Survey findings are useful in informing a variety of decisions made by stakeholders: from developers, government authorities, individual buyers, renters and investors.

Where did we collect data from?

• Received responses from residents and investors in 22 countries, including 9 in the Middle East North
Africa region
• In 2022, our survey will be conducted twice a year.
• Data only presented on countries where we received a sufficient number of responses.

ABOUT PENINSULA REAL ESTATE AND OUR PARTNERS

PENINSULA is an investment and research company that is identifying trends, opportunities and challenges in the MENA real estate market.

ELTIZAM ASSET MANAGEMENT GROUP (Eltizam)is a leading physical asset management company based in the UAE, with an expanding presence across the GCC and MENA regions. Through its group companies, Eltizam provides best-in-class services for the built environment (residential, commercial, retail, industrial and infrastructure asset classes) supporting asset owners to maximize long term returns on assets.

CBRE GROUP, INC. is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). CBRE oers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.

CITYSCAPE INTELLIGENCE, part of Cityscape the world leading global real estate event series, is a brand new content hub that connects the industry to global real estate news and market intelligence.

BERKSHIRE HATHAWAY HOMESERVICES GULF PROPERTIES is the regions premier real estate agency providing expert advice and support to our clients, across many key real estate markets across the world.

This report has been issued by Peninsula Real Estate Management Limited (“Peninsula”) for informational purposes only. It does not purport to be a complete analysis of the topics discussed, which are inherently unpredictable. It has been based on information collected from raw data sources, which Peninsula believes to be reliable. Peninsula has not independently verified those sources and makes no guarantee, representation or warranty as to its accuracy or completeness. The data published in this report is based on responses that we received to a questionnaire sent out by Peninsula during March 2020 and more widely distributed through our partners Eltizam, CBRE, Cityscape and Berkshire Hathaway Home Services. The raw data has not been amended, weighted or seasonally adjusted; we do not, therefore, claim the findings to be statistically significant; nor, as a result, can we guarantee that they accurately reflect real estate sentiment in the MENA region. The sentiment measures published in this report should not be assumed to be accurate predictions of future property market performance. Peninsula accepts no responsibility or liability in respect thereof or for any reliance placed by any person on such information. All opinions and views expressed in the report reflect our judgment at this date and are subject to change without notice. Statements that are forward-looking involve known and unknown risks and uncertainties that may cause future realities to be materially different from those implied by such forward-looking statements. No investment or other business decisions should be made based on the views expressed in this report. This document may not be reproduced or circulated without the prior written consent of Peninsula.

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