Dubai Real Estate Market Review 07-Mar-2024
The Dubai real estate market on the 6th of March, 2024, saw significant activity with total transactions amounting to AED 1,919,619,265.98. off-plan properties, 68.33% (AED 1,311,719,119.63).
How Dubai’s Updated Rental Calculator Could Impact Tenants and Rents
The Dubai Real Estate Regulatory Authority (RERA) updated its rental price calculator, which may cause rents to rise for some tenants, especially those in properties for over two years, potentially by 10-20% in areas like popular villa communities and waterfront apartment buildings. The update, intended to align renewal rents more closely with current market prices, could also stabilize rents in the long term by reducing the gap between benchmark renewal prices and actual market rents, encouraging tenant turnover and increasing supply. This adjustment aims to improve the balance and fluidity in Dubai's rental market, benefiting landlords with higher renewal rates and possibly prompting tenants to relocate or purchase homes.
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CBRE releases its 2024 Middle East Real Estate Market Outlook
The Middle East's real estate market is poised for growth in 2024, driven by economic expansion, demand, and limited supply. Despite a slow growth rate in 2023, the GCC countries are forecasted to see an improved GDP growth of 2.9% in 2024, with both oil and non-oil sectors contributing to the recovery. The region's real estate sector, with investments totaling $1.68 trillion in projects, is buoyed by diversification strategies, particularly in Saudi Arabia and the UAE. CBRE's outlook for 2024 indicates continued positive performance in office, residential, hotel, retail, and industrial & logistics sectors, albeit with challenges such as global economic headwinds and stock shortages in key markets. The report highlights varied growth across different real estate segments and countries, with overall expectations of sustained demand and price performance, particularly in prime and Grade A assets across the GCC.
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Emirati businesswoman to revolutionize real estate investing in the UAE
Propshop, a Dubai-based startup founded by Sarah Sajwani, aims to revolutionize real estate investment by making it more accessible through an online platform. The platform allows investors to purchase "tokens," each representing a square foot of property in the UAE, starting with as little as 500 AED. This new method introduces fractional ownership of real estate, offering early investors a chance to buy into a luxury Dubai property. Propshop provides transparency and flexibility by enabling continuous trading of tokens and potential income from rentals or sales. Utilizing blockchain technology, the company seeks to combine real estate stability with digital trading advantages, promoting trust and transparency in the booming UAE market.
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UAE real estate yields likely remain strong, study shows
CBRE's 2024 Market Outlook reports that prime residential real estate in the UAE is expected to yield 6.25% to 7%, with residential properties potentially offering 7% to 7.5%. Prime office spaces could yield 6.5% to 7.25%, and grade A offices 7% to 7.5%. The UAE, holding $409 billion in real estate projects, represents 24.4% of the GCC region's total. The UAE's residential market has shown growth in prices and transactions in 2023, with expectations for continued growth in Abu Dhabi and a slight moderation in Dubai's market in 2024. Office and retail sectors are expected to see strong demand, though challenges like the shortage of quality stock in Dubai may affect rental rates.
Read the full article on Zawya
Waldorf Astoria Residences Dubai Downtown to Mark First Standalone Residence Outside of the U.S.
Hilton and NABNI Developments have announced the Waldorf Astoria Residences Dubai Downtown, set for completion in 2028, marking the first standalone Waldorf Astoria residential project outside the US. This luxury development, located in Dubai, aims to set a new standard in luxury living, blending world-class design and interiors with exceptional amenities and services. The partnership and project underscore Hilton's commitment to expanding its luxury offerings and NABNI's dedication to high-end real estate development in Dubai, promising residents a unique lifestyle experience near iconic attractions and luxury amenities.
Read the full article on Financial Times
Confident group makes Dubai debut with Lancaster project
Confident Group, an eminent Indian real estate brand, has entered the UAE luxury property market with its first project, Confident Lancaster, in Dubai. Celebrating its 18th anniversary, the Group has unveiled this project alongside plans for five more in the city. Confident Lancaster, remarkable for its swift 11-month completion, offers luxury living near Dubai's key locations. With 70% of units already booked, the project features amenities like security, parking, pools, gyms, spas, and more, marking Confident Group's ambitious expansion into Dubai's real estate sector.
Read the full article on Khaleej Times
DAMAC’s Cavalli Tower on target for completion
DAMAC Properties' Cavalli Tower in Dubai Marina, a 71-storey residential project with a development value of AED2 billion, is on track for completion. Currently 28% complete, it features 436 units and amenities like gyms, pools, a spa, and a fine dining restaurant. The tower, designed by Shaun Killa, embodies luxury with interiors by Roberto Cavalli Home Interiors, reflecting the brand's sophisticated style. Mohammed Tahaineh of DAMAC highlights the goal of integrating Cavalli's elegance into luxury living, offering residents an exclusive lifestyle with three unique interior schemes catering to sustainability, business luxury, and ultra-luxury experiences.
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Tallest residential tower in Dubai to be completed in 2027
The Franck Muller Aeternitas Tower in Dubai, the world's tallest residential building and clock tower, has sold 65% of its units since its launch a few weeks ago, with completion slated for 2027. Standing at 450 meters with 106 floors, this project, revealed by Eman Taha, CEO of London Gate, underscores Dubai's status as a premier global real estate destination and reflects the UAE's strong economic vision. Highlighting Dubai's appeal, the project promises high construction quality, strategic location, and innovative features under the esteemed Franck Muller brand, alongside competitive pricing and flexible payment plans. London Gate plans to announce two more projects, continuing its success in delivering luxury residences ahead of schedule.
Read the full article on Gulf Today
Dubai Real Estate Transactions as Reported on the 6th of March 2024
The Dubai real estate market on the 6th of March, 2024, saw significant activity with total transactions amounting to AED 1,919,619,265.98. A closer analysis reveals that off-plan properties accounted for a significant majority with approximately 68.33% (AED 1,311,719,119.63), while ready properties contributed 31.67% (AED 607,900,146.35) to the overall market transactions.
Breaking down the off-plan category, flats dominated with a contribution of 93.54% (AED 1,226,951,570.55) of the off-plan total. Villas and hotel apartments and rooms followed with smaller portions, 4.69% (AED 61,535,668.00) and 0.61% (AED 8,062,760.00) respectively.
In the ready property category, flats also took the lead with 65.30% (AED 396,936,602.14) of the ready total. Villas represented 20.71% (AED 125,904,755.00), while hotel apartments and rooms accounted for 8.35% (AED 50,770,372.72).
The data indicate a robust inclination towards off-plan property investments in Dubai, particularly in the flat sector, which could be reflective of investor confidence in future market growth and the appeal of new developments. On the ready property side, flats remain a popular choice, suggesting a consistent demand for immediate occupancy or investment opportunities in the residential space. The overall health of the real estate market in Dubai remains strong, underpinned by a diverse range of offerings and investment appetites.
Data Source: Dubai Land Department