GROUP 6:
Aishwarya
Anmol Arora
Saurav Pansari
AGENDA
o Industry Overview
o Research Objectives
o Literature Review
o Research Methodology
o Analysis
o Timeline
o Limitations
o Conclusion
10%
INDUSTRY OVERVIEW
Second largest emirate
Infrastructure marvels.
3.3% to the countrys GDP
$100 billion under construction
Service and tourism based industry
seventeenth most attractive economy
in the world for foreign investment
Full Government Support
10%
Freehold Area
99 year lease hold
Registration Fees 2-4%
No capital gain tax
Annual Property Tax of 5-15%
Transparency Measures
International Property Standards
Dubai FDI support
RESEARCH OBJECTIVES:
To study the recent trends in the real
estate industry
To Study the factors influencing
Customer buying behavior in real estate
To study the impact of EXPO 2020 on
customer buying behavior
LITERATURE REVIEW
Variables:-
Property Maintenance cost
Type of property
Interest rate
Stock prices
Population
Income
Location
Proximity
Brand image
Amenities
Expo 2020
RESEARCH METHODOLOGY
Problem
Definition
Objective Definition
Literature Review
Methodology
Identification of key variables
Primary Data (Survey & Expert Discussion )
Secondary Data
Result
Qualitative Research
Quantitative Research
10%
Expert Discussion
ANALYSIS
-Recent trends in the real estate industry
Residential Apartment/Villa FOR SELL
Residential Apartment/Villa TO LET
Commercial Space FOR SELL
Commercial Space TO LET
10%
0 500 1000 1500 2000 2500
Business Bay
Downtown Dubai
Old Town
Discovery Gardens
Dubai Marina
Dubai Silicon Oasis
Dubai Sports City
IMPZ
International City
JLT
Jumeirah Village
Palm Jumeirah
The Greens 8%
0%
16%
8%
7%
19%
3%
20%
16%
17%
11%
10%
17%
APARMENT SALES PRICE (in AED per square foot) Source: DLD
10%
0 500 1000 1500 2000 2500
Al Furjan
Arabian Ranches
Green Community
Jumeirah Islands
Jumeirah Park
Jumeirah Village Circle
Palm Jumeirah
The Springs
Victory Heights
VILLA (Price in AED per square foot)
4%
5%
0%
4%
1%
18%
8%
10%
4%
Villa Price (in AED per square foot) Source:DLD
Dubai Marina
80,000 14% 110000 22% 155000 7% 195000 8%
JBR
95,000 6% 110000 10% 150000 7% 185000 6%
Discovery Garden
51,000 2% 70000 8% 90000 13% - -
Downtown Dubai
75,000 0% 130000 8% 165000 3% 275000 10%
Dubai Silicon
Oasis
48,000 4% 60000 9% 87000 2% - -
Dubai Sports City
50,000 19% 65000 2% 90000 6% 140000 -
IMPZ
43,000 23% 60000 5% 83000 12% 105000 -
International City
36,000 9% 48000 7% 70000 8% 85000 0%
JLT
70,000 11% 95000 6% 130000 8% 155000 0%
Palm Jumeirah
- - 145000 4% 170000 6% 230000 5%
The Greens
70,000 0% 88000 4% 145000 0% 172000 1%
Studio 1 BD 2 BD 3 BD
Areas
Q1-2014 Q1-2014
Q1-2014
Q1-2014
APARTMENT (Price in AED per annum)
APARTMENT (Price in AED per annum)
Al Furjan
- - 175000 3% - - 270000 0%
Arabian
Ranches
180000 9% 230000 15% 280000 4% 345000 0%
Green
Community
- - 230000 5% 245000 2% 270000 4%
Jumeirah Island
- - - - 330000 3% 350000 6%
Jumeirah Park
- - 210000 -5% 320000 10% 330000 2%
JVC
150000 3% 156000 0% 180000 13% - -
Palm Jumeirah
- - 360000 3% 475000 6% 510000 2%
The Springs
140000 8% 193000 2% - - - -
2 BD 3 BD 4 BD 5 BD
Areas
Q1-2014 Q1-2014
Q1-2014
Q1-2014
VILLA (Price in AED per annum)
10%
8%
0%
16%
8%
7%
19%
3%
20%
16%
17%
11%
0 500 1000 1500 2000 2500
Business Bay
DIFC
Dubai Silicon Oasis
JLT
Tecom C
18%
8%
15%
3%
23%
Average Office Sales Price: Q1-2014 (in AED per Square Foot
10%
8%
0%
16%
8%
7%
19%
3%
20%
16%
17%
11%
0 50 100 150 200 250
Business Bay
DIFC
Dubai Silicon Oasis
JLT
Sheikh Zayed Road
Tecom C
11%
4%
11%
0%
5%
11%
Average Annual Office Rent: Q1-2014 (in AED per Square Foot)
10%
ANALYSIS
- factors influencing Customer buying behavior in real estate
Targeting
Segmentation
Clustering
Factor Analysis
Data Collection
FACTOR ANALYSIS
New Variable list
[Link] related factors
Price
Annual Maintenance Cost
Brokerage fees
[Link] Factors
Bank rate
Financing schemes
[Link] related factors
- Location
Availability of Parking
[Link] related factors
Proximity to school ,mall etc
Reputation of company
Amenities
[Link] stage
[Link] tax
CLUSTERING
Attribute Cluster 1 Cluster 2 Cluster 3
Budget -0.65512813 0.486362 0.004849
Financial 0.103623349 0.298116 -0.36568
Building 0.582929014 -0.62952 0.187123
Locality 0.981450128 -0.2947 -0.42946
Construction Stage 0.501101936 0.341151 -0.6976
Property tax 0.228555362 0.407495 -0.56326
CLUSTER 1
Buying Criteria :
Most important buying criteria are:
Price
Reputation of company
Amenities
Profile :
Mixed nationalities
High income
Recommendation
Posh localities
Large number of Amenities
Established companies have an advantage
Closer to city localities would be prefferred
Advertising the company as a luxorious lifestyle
developer
CLUSTER 2
Buying Criteria :
Most important buying criteria are:
Price
Reputation of company
Location
Amenities
Financial Scheme
Bank rate
Annual Property maintenance cost
Profile :
Mixed nationalities
Middle income group
Recommendation
Location should be easily accessible
Companies with tie-up with banks can tap the
segment easily
Balance between amenities and maintainence cost
required
Print ads would be more beneficial for this segment
CLUSTER 3
Budget
Financial
Building Locality
Construction Stage
Property tax
Cluster3
Cluster3
Buying Criteria :
Most important buying criteria are:
Price
Location
Construction stage
Property tax
Financing Scheme
Parking
Bank rate
Profile :
Mixed nationalities
Mainly people who plan to buy a
house
Recommendation
Introduce finance schemes
Companies with upcoming projects would prefer the
segment
Market study of probable customers would be
helpful
Extensive advertising
ANALYSIS
- Impact of EXPO 2020 on customer buying behavior
Expo 2020 will push up the cost of living across
the country.
25 million visitors and plans to build a 4.3 million
square meters exhibition area
Real Estate and tourism would most likely be
the major beneficiaries of Dubai Expo 2020.
Job creation and new businesses.
Dubai EXPO 2020 is likely to produce Dh 4 trillion
foreign trade.
10%
8%
0%
16%
8%
7%
19%
3%
20%
16%
17%
11%
Year City Country Visitors
(m)
Area
(Ha)
Countries Cost
USD
bn
Total
Spending
(USD bn)
Jobs
Created
2020E Dubai UAE 25 438 182 8.1 18 270,000
2015E Milan Italy 20 110 140 3.5 N/A N/A
2010 Shanghai China 73 528 192 4.2 53 220,000
2005 Aichi Japan 22 173 121 3.3 N/A N/A
2000 Hanover Germany 18 160 155 3.4 N/A N/A
Source: Expo Events ; e=estimated
Worlds Expo Economic Effects
PRIMARY DATA RESPONSE FOR EXPO2020
SECONDARY DATA PREDICTIONS
10%
8%
0%
16%
8%
7%
19%
3%
20%
16%
17%
11%
Increase in the price for both plots and villas developments
Rents are less likely to increase
More stable and sustainable growth to persist over the short term
Increase in demand in both commercial and residential sectors
Increase in the development of both residential and commercial property
Conclusion
Progress Timeline
31
st
Jan-Proposal Submission
20
th
Feb: Statement of Purpose
18
th
March : Mid Review
26
th
March : YEP UAE Networking
8-10 Mar : International Property
Show
Final Review
10%
Real estate sector would be a major contributor in Dubais growth in
coming years.
Customer buying behavior is strongly related to the financial
conditions of the household.
EXPO 2020 would be a boon for the economy provided the safety
measures taken by the government fall in place.
EXPO 2020 would lead to an increase in the supply and the demand
for real estate.
The prices would rise but that would not curb the demand.
Research Conclusion
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