Dubai Real Estate Market Review 05-Jan-2024
Below are the latest real estate news and transactions.
In Dubai property market, many reasons why '1% monthly' plans are showing up everywhere
In 2024, Dubai's property market is seeing a significant shift towards end-user buying, with developers offering more accessible payment plans. A popular option is the 1% monthly payment plan, now available for some villa projects, allowing buyers to manage payments more comfortably compared to the traditional lump-sum approach. This trend reflects a change in buying dynamics in Dubai real estate, as the market's growth is expected to stabilize.
Developers recognize the importance of attracting end-users, especially as the market enters a new phase. Top developers like Emaar, Nakheel, Meraas, and Aldar continue traditional selling methods, while others introduce more attractive offers like the 1% monthly plan to stand out.
For buyers, these plans offer easier access to the market, especially amid tighter and costlier mortgage conditions. Developers are also reducing upfront payment requirements, some as low as 5%, and extending payment periods, like at Expo City where they extend to 8 years.
Timely project completion is now crucial for developers, as it greatly influences sales to end-users. Additionally, unsold properties face corporate tax obligations, adding pressure on developers to manage their inventory efficiently. Lastly, Ras Al Khaimah is emerging as a key investment location, with multiple off-plan projects near the developing Wynn Hotel, expected to drive the property market in the emirate.
Read the full article at Gulf News
DAMAC Properties awards main works contracts worth around AED 300mln
DAMAC Properties, a leading luxury real estate developer in the UAE, has awarded two major contracts worth approximately AED 300 million for developments in DAMAC Hills 2. The first contract, valued at over AED 210 million, was given to the Dubai branch of China Tiesiju Civil Engineering Group Co. Ltd for constructing 439 villas and townhouses in the Natura cluster. The second contract, close to AED 7 million, was awarded to Infra Nets Contracting LLC for road and infrastructure work in the Farmhouses, Verona, Natura, and Violet Clusters.
DAMAC Hills 2, featuring these clusters, offers a variety of amenities such as Malibu Beach, sports facilities, green spaces, a fishing lake, a cycle track, and a lazy river. Mohammed Tahaineh, General Manager of Projects at DAMAC, highlighted the luxury community living experience in DAMAC Hills 2 and the company's commitment to master-planned community living.
These contracts follow recent awards, including AED 236 million for Camelia in DAMAC Hills 2 and over AED 2.4 billion for DAMAC Lagoons in the first half of 2023, demonstrating DAMAC's dedication to developing high-quality communities in Dubai. DAMAC Properties, established in 2002, has delivered around 46,000 homes and is known for its luxury residential skyscrapers and collaborations with eminent brands, contributing to the evolution of luxury living in the Middle East.
Read the full article at Zawya
MAG acquires prime plot in Dubai to build Keturah residences
MAG, a prominent real estate developer in the UAE, has acquired a new plot in Downtown Dubai for AED 350 million ($95.2 million) to develop a luxury residential project under its Keturah brand. The purchase reflects the dynamism of Dubai’s real estate sector and the increasing demand for strategic locations to accommodate investors and buyers.
The Keturah brand, known for its luxury real estate and hospitality concept, has gained popularity following the success of its earlier projects, Keturah Reserve and Keturah Resort. Keturah Reserve, a AED 3 billion ($816 million) luxury residential project in Meydan, began construction in late 2022. It features 114 four-bedroom townhouses, 10 five-bedroom townhouses, 467 apartments, and 69 plots for signature villas, with completion expected in the first half of 2025.
Keturah Resort, characterized by its tranquil creek waters, offers 12 luxurious creekside waterfront mansions and exclusive creekside residences.
Senior Executive Vice Chairman Talal Moafaq Al Gaddah expressed enthusiasm about the new development in Downtown Dubai, emphasizing the vision and strategy of Dubai's leadership in fostering innovative projects that enhance the city's appeal. He announced that the construction of Keturah Downtown is expected to be completed in the fourth quarter of 2027.
Read the full article at GDN
Dubai Real Estate Transactions as Reported on the 4th of January 2024
Over AED 1 Billion in Real Estate Transactions Mark a Prosperous Start to 2023 for UAE Market
On January 4, 2023, the UAE's property market witnessed a substantial amount of transactions in both off-plan and ready properties, with figures crossing the AED 1 billion threshold.
In the off-plan property sector, total sales reached AED 557 million, with the majority of this amount coming from flat sales, which accounted for AED 506 million. Villa transactions also contributed a significant sum of AED 48 million. It was observed that there were no sales for hotel apartments and residences in the off-plan market during this time.
Turning to the ready property sector, total sales were reported at AED 470 million. Here, sales of flats made up AED 326 million, while villas sold for AED 90 million. Additionally, hotel apartments and residences saw a combined sales volume of AED 23 million.
These figures reflect a considerable volume of activity within the UAE real estate market as of the beginning of 2023, indicating a vibrant start to the year in terms of property transactions.
Data Source: Dubai Land Department