Kailash NagdevManaging Director - MENA

GCC Real Estate Investor Sentiment

Understanding the investor mindset: Building

spaces with your future investor in mind

Who did we speak to?

Home buyers and investors

in the GCC

Have invested or are intending to invest in the GCC

Respondent profile.

23%

39%

30%

8%

Up to AED 14,999

AED 15,000 to AED 29,999

Above AED 30,000

Prefer not to say/ DK

Net Monthly Household Income

All respondents currently own a property or are willing to buy a property in the next year.

46%

38%

16%

UAE

Saudi Arabia

Others

Country of residence

20%

50%

22%

8%

GCC nationals

Asian Expats

Arab Expats

Westerners & Others

Nationality group

54%Are looking to

invest in the GCC

4

Where are people most likely to invest?

54%

12%20% 19%

13%

GCC Levant North Africa Asia Other

Globally

The UAE remains the most appealing country for real estate investment in the Middle East.

UAE

2017

2016

63%

12% 10%

Saudi ArabiaEgypt

68%

10% 6%

Dubai is the most appealing city for real estate investment in the Middle East.

2017

2016

Dubai Abu Dhabi Mecca

69%65%

7%5%

9%5%

On average, consumers interested in the GCC market have more money to invest in real estate.

38%

35%

13%

5%

3%

7%

Less than USD 200,000

USD 200,001 – 500,000

USD 500,001 – 1 Million

USD 2 – 3 Million

Above USD 3 Million

Don’t know

Average global budget Average GCC budget

27%

42%

17%

7%

4%

4%

Less than USD 200,000

USD 200,001 – 500,000

USD 500,001 – 1 Million

USD 2 – 3 Million

Above USD 3 Million

Don’t know

Average: USD 561,000 Average: USD 717,000

14%13% 12%

11% 11%9%

11%

9% 9%8%

13%

10%

State of localeconomy

Lack of trust inbrokers/

developers

Security in yourmarket ofinterest

CurrencyFluctuations

State of theglobal economy

Discouraginginvestment

laws

2017 2016

However, there are macro-economic factors of concern when investing in real estate.

In 2016, falling oil prices was among the highest concerns (13%)

67%

Saudi Arabia

Respondents expect residential propertysales prices to decline in the year to come.

50%

UAE

44%

Other GCCcountries

Average: 10% Average: 3% Average: 2.6%

2017

2016 45% 47% 43%

Expected price movement among those interested in investing in the GCC.

Sales

24%

13%

57%

5%

Increase

No change

Decrease

Don't know

22%

14%

61%

3%

Increase

No change

Decrease

Don't know

Rental

Average decrease: 6% Average decrease: 6%

70%

Saudi Arabia

Similarly, residential property rental prices are expected to decline in the GCC in the coming year.

54%

UAE

49%

Other GCC countries

Average: 3.5% Average: 3.8%

2017

2016 35% 42% 41%

Average: 11%

Two bedroom apartments are the

most popular type of property.

Among GCC residents interested in investing in the GCC

5%

15%

23%

19% 20%19%

Studio One bedapartment

Two bedapartment

Three bed plusapartment

Villa – up to 4 bedrooms

Villa – 4+ bedrooms

Residential properties in the Downtown /City Center are the most sought-after.

33%Stand alone

residential properties in Downtown/

City Center

Saudi Arabia residents (46%)

33%Gated communities in the City that host

commercial and retail spaces

UAE residents (38%)

Value for money, quality and accessibility are the most important criteria when selecting a residential property.

Value for money

House qualityEasy access to

highway

Nearby amenities are crucial when consumers are evaluating their property location.

41% 40%

33% 32%

Educational facilities(schools)

Healthcare facilities(hospitals)

Grocery stores Place of work/business

Respondents interested in investing in the GCC specifically.

Availability of affordable units

Access to reliable brokers

Access to data comparing properties

Availability of smart or energy efficient

properties

Lack of affordable properties, however, is still perceived to be a clear gap in the current market.

What’s missing from the Real Estate market?

Expo 2020 is believed to result in a positive impact on the UAE real estate market.

62%It will

increase supply of

residential properties

in new areas

46%It will

increase availability

of affordable residential properties

66%It will

increase real

estate buyer

interest

Emaar Properties tops the list of the healthiest real estate brands in the UAE.

38.8

18.714.9

11.7 10.0

Index Score Real Estate Brands (H1 2017)

Index is a single composite score of Impression, Reputation, Quality, Value, Satisfaction and Recommend

H12017 Base = 2834

37.6

18.7

13.0 11.8 10.7

Buzz Score (H1 2017)

Which brands have you heard something positive or negative about in the news, through advertising or word of mouth.

Brands with the highest average Buzz scores in H1 2017, Buzz is a net score of those who have heard positive news about the brand minus those of who have negative news about the brand in the past two weeks

H12017 Volume = 2834

Which brands have you seen an advertisement for in the past two weeks?

41.8

30.6

22.2

16.813.3

Ad Awareness (H1 2017)

Ad Awareness is the % of respondents who have seen an Ad from the brand in the past two weeks

H1 2017 (January till June): Volume = 2834

Does this brand represent good quality or poor quality?

49.2

24.2

16.6 14.3 11.7

Quality (H1 2017)

Value for money is a net score of % of respondents who believe brand offers good quality % of respondents who believe brand offers poor Quality

H1 2017 (January till June): Volume = 2834

Is this brand good value for money or poor value for money?

30.0

16.011.7 11.7 10.5

Value for Money (H1 2017)

Value for money is a net score of % of respondents who believe brand offers good value for money minus % of respondents who believe brand offers poor value for money

H1 2017 (January till June): Volume = 2834

When you next make a purchase, which brands would you consider?

30.6

17.214.2 14.0

10.3 9.8 8.5

Purchase Consideration (H1 2017)

Index is a single composite score of Impression, Reputation, Quality, Value, Satisfaction & Recommend

H1 2017 (January till June): Volume = 2834

Questions?

Kailash NagdevManaging Director – MENA

+971 52 952 6661kailash.nagdev@yougov.com