Dubai Real Estate Market Review 04-Jan-2024
Below are the latest real estate news and transactions.
The next wave: Top Dubai real estate trends forecasted in 2024
Based on insights from industry leaders gathered by Property Finders. In 2023, the sector showed sustained growth and evolving consumer preferences, with increased foreign interest and opportunities for transformation. Factors contributing to this growth include:
Mid-Market Stabilisation: Driven Properties notes a reduction in new units for 2024 compared to 2023, with a focus on affordable areas and some mid-market areas. This is expected to increase rental prices in affordable regions and stabilize the mid-market.
AI Integration and Digital Transformation: The integration of technology and AI is reshaping the real estate industry, enhancing transparency and trust. Features like virtual tours, 3D plans, and AI-driven market analysis are revolutionizing property buying and improving transparency in transactions.
Cap Rate Compression: Driven Properties suggests that Dubai's cap rates, currently higher than global peers, are expected to align more closely with those cities in 2024, indicating potential for asset price growth and investment returns.
Increased Diversification: The UAE real estate sector benefits from economic diversification and new policies attracting foreign investment. The surge in off-plan projects in Abu Dhabi and expected handovers in 2024 will influence the market dynamics.
Relocation Prospects: With Dubai's strategic development and government initiatives, there's an optimistic outlook for the real estate market in 2024. Factors like remote work and flexible living are influencing this trend.
Overall, the real estate sector in the UAE, especially in Dubai and Abu Dhabi, is poised for continued expansion in 2024, supported by technological advancements, economic policies, and market dynamics.
Read the full article at Construction Week
Yet-to-be-built Dubai penthouse sells for record $136 million
A five-bedroom penthouse in Dubai's Como Residences has sold for 500 million UAE dirhams (over $136 million), setting a new record in Dubai's bustling luxury real estate market. The penthouse, which is yet to be built, is located on the Palm Jumeirah, an exclusive artificial archipelago known for luxury amenities. Spanning almost 22,000 square feet, the penthouse sits atop a 71-story tower and is part of the Como Residences, currently under construction with expected completion by late 2027.
This sale surpasses the previous Dubai record of 420 million dirhams (about $114 million) for a penthouse at the Marsa Al Arab Hotel. The Como Residences penthouse is the world's third most expensive, featuring a 360-degree sky pool and panoramic views of iconic Dubai landmarks. The buyer, reportedly from Eastern Europe, remains anonymous.
The Como Residences tower, developed by Nakheel, will stand over 300 meters tall and will be classified as a supertall skyscraper. It will house 76 apartments ranging from two to seven bedrooms, each with private elevators. Amenities include a private sandy beach, a lap pool, and a rooftop infinity pool.
Chris Boswell, a Dubai-based luxury real estate agent, notes the exclusivity and appeal of such properties, observing a shift in buyers from speculative investors to those seeking to reside in Dubai, attracted by safety and unique views.
Read the full article at CNN
Burj Khalifa sees $2.7bn home sales since launch, deals up 22% last year
Fourteen years after its opening, Dubai's Burj Khalifa continues to captivate real estate investors, representing about 8% of all home sales in Downtown Dubai with $2.7 billion in sales. In 2023, the number of homes for sale in the Burj Khalifa decreased by 52%, indicating a shift towards long-term investment and residency. Despite this decrease, sales in the tower rose by 22% to 117 deals, totaling over AED 1.06 billion ($288.7 million).
The Burj Khalifa's robust demand reflects Dubai's overall property market momentum. The city's emergence as a second homes hub has led to a 38% increase in average city-wide prices since March 2021, with the Burj Khalifa outperforming the rest at a 55.4% price growth. This trend is attributed to international buyers targeting Dubai’s most expensive homes.
The most expensive apartment in the Burj Khalifa in 2023 sold for AED 4,852 ($1,321) per square foot, a 20% increase over 2022's highest-priced sale. Overall, the tower has accounted for 8% of Downtown's total home sales value since 2010.
Elsewhere in Dubai, prime residential areas like the Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island saw record growth in 2023. Dubai ranks third globally in prime residential market forecasts for 2024, with a predicted 5% increase, following a 16% rise in 2023. Despite this growth, Dubai remains one of the most affordable markets for luxury homes.
Downtown Dubai, a non-prime neighborhood by Knight Frank's classification, registered four sales above $10 million in 2023. The area, along with Business Bay and DIFC, is witnessing high demand, with branded residential operators adding to the allure. Business Bay is emerging as a hotspot, and DIFC's recent project sold out quickly, underscoring the continued appeal of these areas.
Read the full article at Arabian Business
Dubai Real Estate Transactions as Reported on the 3rd of January 2024
Dubai Real Estate Investments Tilt Towards Ready Properties As of January 3, 2024
Dubai, January 3, 2024 - Recent transaction data from Dubai’s real estate market has registered a notable volume of investments in ready properties, totaling AED 335,449,021.96. This figure surpasses the investments in off-plan properties, which amounted to AED 281,000,982.70.
Within the ready property segment, flats have seen transactions of AED 242,702,354.97, while villas have recorded investments of AED 70,307,145.73. Hotel apartments and residences in the same segment accounted for AED 12,855,225.26.
For off-plan properties, the investment in flats was reported at AED 253,406,159.70, with villa investments at AED 22,746,665.00. There were zero transactions reported for hotel apartments and residences in the off-plan property market as of this date.
Data Source: Dubai Land Department