Dubai Real Estate Market Review 06-Feb-2024
Below are the latest real estate news and transactions.
Changes to eviction notices put Dubai tenants on alert
A recent court decision and interpretations by the Dubai Rental Dispute Centre (RDC) have made eviction notices transferable from property sellers to new buyers, simplifying the process for landlords wanting to sell properties with tenants. Previously, new owners had to issue a new 12-month eviction notice, potentially extending a tenant's stay. This change aims to provide stability and protect both landlords and tenants, allowing for smoother transitions and respecting the eviction notice period attached to the property. The law seeks to balance the interests of investors and tenants, within a framework that includes rent increase regulations and tenant protection guidelines, amidst a dynamic property market experiencing significant transaction growth.
Read the full article on The National
Dubai records over $3.1bln in weeklong real estate transactions
The DLD report showed that 192 plots were sold for AED2.61 billion, while 2,699 apartments and villas were purchased for AED5.75 billion.
Read the full story on Zawya
Dubai real estate market expected to grow 5% in 2024, says expert
The significant economic growth in the UAE is expected to benefit various industries, with the real estate sector in Dubai standing out prominently.
Read the full article on Arabian Business
Dubai real estate powers through January 2024 with Dhs35bn in sales
Dubai's real estate market is expected to maintain its growth into 2024, with a 17% increase in sales transactions year-on-year in January, totaling over 11,000. The value of transactions also rose by 27% to nearly Dhs35bn. Off-plan properties saw a 25% increase in demand, with transaction values up by 21% to Dhs15bn. Existing property transactions grew by 8% in volume, with their value increasing by 31% to Dhs21bn. The market shows a preference for apartments over villas/townhouses, and there's a significant interest in furnished properties, especially among apartment seekers. The most sought-after areas vary for ownership and rentals, highlighting diverse preferences within Dubai's dynamic real estate sector.
Read the full article on Gulf Business
Cost Of Buying, Selling $2Million Property Cheaper In Dubai Than London, Mumbai, Paris Among Other Cities
Dubai's prime residential property market led global cities in growth in 2023, with prices increasing by 17.4%. Although growth is expected to slow to 4-5.9% in 2024, Dubai will still be one of the fastest-growing markets, trailing only Sydney. The slowdown reflects a shift towards a more normal market. Dubai's appeal to high-net-worth individuals and its competitive pricing at $850 per square foot contribute to its strong performance. Despite global uncertainties, Dubai's real estate market benefits from economic and political stability, attracting both international and domestic buyers. Additionally, prime rental value growth places Dubai among the top cities worldwide, with significant yields and competitive costs associated with property transactions.
Read the full article on MENAFN
Kempinski announces upcoming luxury real estate project in Dubai Marina
The Kempinski Marina Residences will stand out among the towering structures in Dubai’s lifestyle district.
Read the full article on Arabian Business
Dubai Real Estate Transactions as Reported on the 5th of February 2024
On the 5th of February, 2024, the Dubai real estate market saw robust activity, with total transactions reaching AED 1.67 billion. The market dynamics show a significant preference for off-plan transactions, especially flats, which dominated the day's activities.
Off-Plan Transactions:
The off-plan market segment exhibited a strong performance, with total transactions amounting to AED 1.01 billion. This reflects a vigorous demand for new construction projects in Dubai. The majority of these transactions were concentrated in the flat category, with an impressive AED 900.36 million in sales, signaling a high investor and buyer confidence in this asset type. Villas also showed a respectable performance with transactions worth AED 79.83 million, despite being significantly lower than flats. Hotel apartments and rooms contributed the least to the off-plan segment, with transactions of AED 14.82 million, indicating a more cautious approach from investors in the hospitality sector perhaps due to market saturation or investors prioritizing residential units.
Ready Properties:
Transactions for ready-to-move-in properties totaled AED 666.02 million. Flats again led the demand with transactions worth AED 446.59 million, showing that the appetite for completed units remains strong, likely due to immediate rental income opportunities or end-user demand. Villas accounted for AED 128.34 million, which is a considerable amount but reflects the higher value and lower volume nature of this market segment. Hotel apartments and rooms saw a transaction value of AED 34.28 million, which is modest in comparison to residential units but indicates a steady interest in hospitality real estate, possibly driven by Dubai's strong tourism industry.
Market Implications:
The dominance of flat transactions in both off-plan and ready segments suggests a trend towards urban living spaces, possibly driven by new residential developments and the appeal of city living in Dubai. The comparatively lower transaction volumes for villas and hotel properties may point to a more niche market with specific investor profiles.
Conclusion:
The real estate transactions on the 5th of February 2024 underline the continued growth and investor confidence in Dubai's property market. The data indicates a sustained interest in off-plan flats, highlighting the market's optimism about the future of Dubai's urban development. The demand for ready properties remains substantial, ensuring a balanced real estate ecosystem. Stakeholders should note the trends for future strategic planning and investment decisions.
Data Source: Dubai Land Department