Dubai Real Estate Market Review 08-Feb-2024
Below are the latest real estate news and transactions.
Dh634 billion worth real estate deals in 2023
In 2023, Dubai's real estate sector experienced significant growth, with the Dubai Land Department reporting 1.6 million transactions, a 16.9% increase from 2022. Real estate transactions exceeded Dh634 billion, marking a 20% growth in value and a 36% increase in transaction volume. Investments in real estate surged by 55%, totaling approximately Dh412 billion. The sector attracted 71,002 new investors, boosting the total to 113,655 owners. Notably, 42% of these new investors were non-residents. Gulf, Arab, and foreign investors actively participated, contributing significantly to the investment inflow.
Read the full article on Gulf News
36 UAE firms bag $5.9bln deals from Abu Dhabi’s Aldar Properties
Aldar Properties, Abu Dhabi's leading developer, invested AED 22 billion ($5.9 billion) over a year to expand its real estate portfolio and enhance local infrastructure. This investment funded 49 contracts with 36 UAE-based companies, injecting AED 10.5 billion back into the local economy under the In-Country Value (ICV) program. These contracts aim to supply the UAE market with new villas, townhouses, apartments, Grade A offices, retail spaces, and schools, addressing growing demand. Projects also include major highway developments around Yas Island, Saadiyat Island, and Al Shamkha, with a focus on improving connectivity and infrastructure in Abu Dhabi.
Read the full article on Zawya
Abu Dhabi luxury property market experiencing significant demand
The Abu Dhabi real estate market has seen significant growth, particularly in high-demand upscale areas, making it a desirable location for residential and investment purposes. In 2023, the UAE real estate market, including Dubai, had an outstanding year. A report from property portal Bayut underscores the rise in property prices in Abu Dhabi, indicating strong interest from high net-worth individuals (HNWIs) in both local and international markets. Key developments like Rahman Islands and Jubail Islands have attracted investors, while the rental market's growth encourages property ownership. Luxury and affordable segments alike have seen price increases, with notable spikes in rental costs for luxury houses on Yas Island and Saadiyat Island. The market's vibrancy is evidenced by over 14 million visits to Abu Dhabi property listings in 2023, with ongoing high demand expected to persist, driven by attractive investment opportunities and a supportive economic environment.
Read the full article on FXCompared
Damac unveils new amenities at Dubai residential community
Damac, a leading UAE developer, has introduced new amenities in its Damac Hills 2 community in Dubai, aiming to offer a Californian coastal lifestyle. This development is designed to enhance community living with relaxation, recreation, and natural beauty. Damac Hills 2, home to over 30,000 residents, is divided into three zones featuring Central Park, District Park, and Picnic Park, each providing unique offerings year-round. Highlights include Malibu Beach at Water Town with a wave pool and lazy river, Sports Town with multiple sports facilities, and the Pavilion area offering open spaces for various activities. Additionally, Damac Hills 2 now features a bird aviary with diverse species, a fully occupied community mall with major brands, and a nursery, underscoring Damac's commitment to enhancing residents' lifestyle and convenience.
Read the full article on Zawya
Indian real estate services major Anarock eyes major UAE, GCC expansion
It plans to enter into more business verticals in the real estate and property management services, either organically or through acquisitions in the region, armed with a $25 million cash chest raised in a fresh fundraising round early this week.
Read the full article on Arabian Business
Dubai Real Estate Transactions as Reported on the 7th of February 2024
Dubai's real estate landscape continues to surge with a total of AED 1,775,271,273 in transactions recorded. The city's property scene, known for its dynamism, has once again demonstrated a strong preference for off-plan properties, which have taken the lion’s share of the market (59.02%).
Off-Plan Transactions
Overview: Off-plan transactions comprised a significant portion of the market activity with a total value of AED 1,047,757,744.
Flats: Dominated the off-plan sector with 89.65% of the total off-plan transaction value, amounting to AED 939,337,654.
Villas: Accounted for 7.55% of off-plan transactions, with a value of AED 79,101,342.
Hotel Apartments & Rooms: Represented the smallest share in this segment at 2.26%, totaling AED 23,677,038.
Ready Property Transactions
Overview: Ready property transactions totaled AED 727,513,529.
Flats: Were the most prominent in the ready property sector, holding 74.50% of the segment's value, equivalent to AED 542,031,222.
Villas: Made up 14.70% of the ready transactions, valued at AED 106,945,140.
Hotel Apartments & Rooms: Comprised 5.38% of this category, with a total of AED 39,104,803.
Market Dynamics
The off-plan market is evidently more active, highlighting investor confidence and a forward-looking approach in the real estate sector.
The overwhelming preference for flats in both off-plan and ready markets suggests a trend towards apartment living and investment, potentially driven by demographic factors or a strategic investment outlook.
Villas, while more substantial in the ready market, show a consistent but smaller portion of transactions, indicating a steady demand for more spacious and private living accommodations.
Hotel apartments and rooms, though a minor portion, indicate a niche market that could be associated with Dubai's thriving tourism and hospitality industry.
Conclusion
The real estate market in Dubai on 07-Feb-2024 reflects a dynamic and robust sector with a strong inclination towards flats in the off-plan market.
Investment patterns suggest a healthy demand for new development projects and a stable interest in ready-to-move-in properties.
The data portrays a diversified market with multiple segments catering to various investor and consumer needs.
Data Source: Dubai Land Department