Regression Analysis of UAE Housing Market

Running head: MICRO ECONOMICS
MICRO ECONOMICS
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MICRO ECONOMICS
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Table of Contents
Executive summary....................................................................................................................3
Introduction................................................................................................................................4
Discussion..................................................................................................................................4
Model formation.........................................................................................................................5
Key statistics..............................................................................................................................6
Conclusion................................................................................................................................10
Bibliography.............................................................................................................................11

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Executive summary
The regression equation that has been formed from the given set of data are
Y=77904.93345-18902.17695X1+1.473667926X2-1.065662134X3+0.302255511X4.The
average price of apartments in March 2019 was around AED 1.8 million, and the average
price of villas decreased to about AED 4.5 million. The mean of average yearly rent for
studio type of housing is around 41149 and for one bedroom apartment is around 59310. The
highest means for 2-bed room apartments is 73850. The statistics are significant in the sense
that most of the peoples in UAE are demanding two bedroom apartments.

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Introduction
The main aim of this study is to take the housing market of the UAE into
consideration. Through this study, the various factors that will help in the development of a
regression model that will help in the prediction of future variables in the housing market of
the UAE. The variables that will be considered while making the regression model are GDP
of UAE, the price index of the housing market, and many other variables. The study is
significant in the sense that it will highlight the importance of policies that will be mainly aim
to increase the housing market accessibility. The study is important because of the fact that
through the development of the regression model, the correlation and dependency will be
crucial for the development of better housing policies taken by the government.
Discussion
This section is going to offer a detailed picture of the housing market of UAE, and
through the incorporation of the regression model, the study will identify the development of
policies that will improve the business environment for the housing industry. The Federal
Reserve government of UAE has taken the initiative to clear the first 5-10 years of residency
visa for the investors that have made many investors come and invest within UAE. Apart
from this, the government is also aiming to reduce the price of property transaction to 2%
from 4% to boost up the sales1. Not only this, the huge tax-free salaries that are being given
to the employees are also favouring the employees to purchase the properties. Most of the
1 www.thenational.ae. "Why Buyers Are Now Entering The UAE Property Market". The National,
2019, https://www.thenational.ae/business/money/why-buyers-are-now-entering-the-uae-property-
market-1.837894.