DMCC Breaks Ground On Second Phase Of Uptown Dubai As It Continues Ramp-up Of Premium Real Estate Offering

DMCC, Dubai's authority on commodities trade and enterprise, has initiated the second phase of its Uptown Dubai development, marking the construction of two mid-rise towers, 23 and 17 storeys high, in the city's south. These towers will offer 70,000 square meters of Grade A commercial office space and 8,000 square meters of F&B and retail, enhancing the district's real estate. Swissboring Overseas Piling Corporation has been appointed for the foundation works. Upon completion, Uptown Dubai will feature a gross floor area of 538,000 square meters, with 232,000 square meters dedicated to commercial office space, contributing to Dubai's vision of becoming a world-class business district.

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Amid an economic downturn, Dubai offers an attractive alternative for investors in Czechia

Dubai's real estate market is thriving, contrasting sharply with Europe's stagnating markets. In 2022, Dubai set a record for real estate transactions, with luxury apartments and villa prices rising by 9% and 18%, respectively. TRIM Real Estate, the first Czech-Slovak agency in Dubai, highlights the city's high investment returns, significant capital appreciation, and the absence of taxes on property income as key advantages. Dubai's low-tax environment, combined with its status as a global hub for tourism, expat living, and corporate headquarters, makes it a lucrative option for real estate investors from Czechia, Slovakia, and beyond.

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Deposit-free short and long-term rentals to launch in UAE

Cardoo set to repeat its success in car rental segment in the real estate sector, enabling customers to take houses on rent without having to pay any hefty upfront deposits.

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Abu Dhabi real estate transactions hit $1.36bln in January 2024

Real estate transactions in the Emirate of Abu Dhabi amounted to over AED5 billion in the first month of 2024, comprising 1,386 transactions of sales and mortgages on various types of real estate units.

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Dubai Real Estate Transactions as Reported on the 1st of February 2024

On February 1, 2024, the Dubai real estate market recorded an impressive AED 1,785,116,679 in total transactions. These transactions were divided into two primary categories: off-plan and ready properties, with off-plan transactions constituting a significant majority (66%).

Off-Plan Transactions:

• Total Transactions: AED 1,180,452,172

• Flats: AED 1,048,761,817

• Villas: AED 110,962,701

• Hotel Apartments & Rooms: AED 15,016,192

The data indicates strong investor optimism about the city’s real estate future. The majority of this investment was in flats (about 89%), followed by villas (approximately 9.4%), and the hotel apartments & rooms contributed around 1.3% of the total off-plan segment value.

Ready Property Transactions:

• Total Transactions: AED 604,664,507

• Flats: AED 464,508,934

• Villas: AED 75,433,113

• Hotel Apartments & Rooms: AED 39,468,932

The data points to a strong market for residential units ready for immediate occupancy - likely driven by end-users looking to capitalize on Dubai's attractive living conditions and investors seeking immediate rental income opportunities- with flats leading the way, constituting about 77% of the ready property segment transactions, followed by villas with roughly 12.5%, and hotel apartments & rooms made up about 6.5% of the total.

Analysis:

The predominance of off-plan transactions suggests that investors are highly optimistic about the future of Dubai's real estate market, banking on the long-term growth potential. The substantial difference between off-plan and ready flat transactions underscores a market trend where investors and homebuyers are willing to wait for property completion, possibly incentivized by favorable payment plans or expectations of capital appreciation.

The data also suggests a diversification of the real estate portfolio with investments in different property types.

The lower volume of transactions in the ready segment might reflect a premium placed on newly built properties, which are perceived as better aligned with the latest market trends and consumer preferences. Alternatively, it could signal a market with limited ready inventory, pushing buyers towards off-plan purchases.

Conclusion:

The February 1st, 2024 transactions highlight Dubai's dynamic real estate market, characterized by a strong confidence in off-plan properties, and an active but lesser interest in ready-to-move-in properties. This aligns with the city’s strategic vision of growth and its efforts to attract international investors by offering a tax-friendly environment, world-class infrastructure, and a high quality of life. As Dubai continues to cement its position as a global business hub and a desirable expat destination, the real estate market is expected to mirror this trajectory of expansion and prosperity.

Data Source: Dubai Land Department