You are hereHome CountriesUAE
Dubai real estate: The Ramadan phenomena
Source: REIDIN , Author: Posted by BI-ME staff
Posted: Tue June 2, 2015 4:49 pm

UAE. The Ramadan phenomena is a long held belief that transactional activity for both the real estate and the equity markets plummet; as a consequence any price action signals that emanate during this month is exaggerated on account of amplified price volatility on thin volumes.


       
A price analysis over the last 7 years reveals Ramadan is no different to the rest of the year, negating the concept that price action is sluggish (0.6% average change, which is exactly the average monthly change for the rest of the months of the year).

When the same analysis was applied to transactional activity a 16% dip was witnessed. However, a common mistake when analyzing transactional activity is that there is usually a 30 day lag between the MOU and the transfer to be registered. A comparison between Ramadan transactions and 30 days after shows a difference of 1%, highlighting the minimal effect of Ramadan.

A similar analysis in the DFM was conducted which revealed no consistent pattern in price change in the month of Ramadan compared to the average of other months in the year (0.6% vs. 0.3%).

In terms of capital market transactional activity, there is a systematic decline of 6.7%, compared to other months; however this is largely due to the number of trading hours being reduced.

Note: Unitas is the author for these research reports and REIDIN is the sole data provider for these research reports.

To read the full report click here: http://www.reidin.com/blog/en/836-dubai-the-ramadan-phenomena.html

About REIDIN
REIDIN is the leading real estate information company focusing on emerging markets. REIDIN offers intelligent and user-friendly online information solutions helping professionals access relevant data and information in a timely and cost effective basis.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: September 21, 2018
UAE. Analysts to explore AI developments and influence on businesses at the Gartner Symposium/ITxpo 2019, March 4-6 in Dubai, United Arab Emirates.
date:Posted: September 20, 2018
UAE. Research from Aruba and Ponemon Institute shows security teams view Machine Learning and network visibility for users and IoT devices essential for battling stealthy threats inside IT infrastructures.
date:Posted: September 19, 2018
UAE. Few are confident in spotting security risks and vulnerabilities in DevOps operated public cloud environments.
dhgate