Dubai Real Estate Market Review 08-Mar-2024
On March 7th, 2024, the Dubai real estate market observed transactions totaling AED 2,272,187,032.42. Total off-plan was AED 1,526,125,487.60, which is approximately 69.46% of the total transactions.
Hundreds of residents fighting not to lose life savings in property battle
MK and hundreds of other investors in Dubai's Falconcity of Wonders - Eastern Residence project face the possibility of losing their homes and life savings. Despite investing significant amounts, a legal dispute between Falcon Properties and Dubailand over unpaid dues has led to the auctioning of the plots on which their homes were built. With more than 20 investors reaching out for help, the situation highlights a failure in communication and due diligence, leaving many families uncertain about their future homes and financial investments. The ongoing legal battle and attempts for resolution underscore the precarious nature of off-plan property investments and the critical need for transparency and legal safeguards for investors.
Read the full article on Khaleej Times
Wealthy individuals relocating to Dubai
Dubai has emerged as a hub for the ultra-rich, offering a luxury lifestyle and a booming real estate market that attracts high-net-worth individuals (HNWIs) seeking wealth preservation. According to Kashif Ansari, CEO of Juwai IQI, Dubai's appeal has led to a significant increase in HNWIs relocating there, with 3,500 doing so recently. This influx is expected to contribute $500 billion to the UAE economy by 2026. The real estate market in Dubai is experiencing robust growth, with residential prices predicted to rise by over 20% in 2024, underlining the city's economic resilience and status as a safe haven for global investors.
Read the full article on Gulf Today
In Dubai, the real estate rental market has revealed a break in the trend in the so-called low and high seasons
In Dubai's residential rental market, a new trend emerges as demand remains strong even during the traditionally low season, starting in April. Colife experts note that tenants are less concerned about seasonal heat and are more focused on securing long-term housing with fixed rental rates, leading to a shift in the market. Contracts of 5 to 7 months are increasingly common, with a rise in both the number and rental rate of these medium-term contracts, surpassing high season values. Despite expectations, the seasonal decline in prices is not as pronounced, with last year's summer demand remaining steady and rental prices expected to increase in 2024.
Read the full article on Zawya
Property developer Binghatti Holding’s $300mln sukuk lists on Nasdaq Dubai
UAE real estate firm Binghatti Holding has launched its first $300 million sukuk on Nasdaq Dubai, marking the first MENA real estate US dollar-denominated sukuk of 2024. The sukuk, with a 9.625% coupon rate and a 2027 maturity, was over-subscribed by more than double, thanks to strong investor demand leading to a 30 basis points tightening. Fitch Ratings has given Binghatti a B+ credit rating with a positive outlook. The company also unveiled its third luxury residences project in partnership with Mercedes-Benz, adding to its collaborations with Bugatti and Jacob & Co., totaling a project value of 16 billion UAE dirhams.
Read the full article on Zawya
Republic Expands into Middle East in Partnership with Stake – a Real Estate Investment Platform
Republic, an online investment firm, is expanding into the Middle East through a partnership with Stake, a Dubai-based online investment platform for real estate. This collaboration will allow Republic's users to access valuable real estate investments, aiming to democratize the market globally. Stake, which has 500,000 users from over 160 countries, has generated $3 million in rental income and carried out $80 million in property transactions. A recent success, Al Majara in Dubai, saw a 51% appreciation in two and a half years. Republic's CEO, Kendrick Nguyen, sees this as an opportunity to diversify portfolios and strengthen their presence in the MENA region. Republic has raised over $3 billion across its ecosystem, engaging investors worldwide.
Read the full article on Crowdfund Insider
Estate Protocol Launches its Tokenized Real Estate Marketplace with First Property in Dubai
Estate Protocol launches as a real estate tokenization company, offering its first property listing in Dubai to cryptocurrency enthusiasts. The platform, built on Arbitrum, facilitates fractionalized real estate investments using blockchain technology, allowing global investors to partake in the real estate market with enhanced transaction speed and reduced costs. Estate Protocol aims to provide access to high-quality assets in stable economies like Dubai, making real estate investment accessible to those without significant capital. It plans to improve market liquidity and user experience, marking its entry into the Dubai real estate market as a step towards democratizing real estate investments globally.
Read the full article on EIN News
Real estate industry in the region shows resilience amid global challenges, Savills report says
Strong non-oil sector growth in Saudi Arabia and the UAE fuels real estate industry.
Read the full article on Arabian Business
Deyaar to distribute dividends for the first time in its history
The real estate company recommended distributing 4% of share capital, or $47.65 million as dividend.
Read the full article on Arabian Business
Dubai Real Estate Transactions as Reported on the 7th of March 2024
On March 7th, 2024, the Dubai real estate market observed transactions totaling AED 2,272,187,032.42. A breakdown of these transactions into two primary categories—'Off-Plan' and 'Ready' properties—reveals a market with significant activity in both sectors.
Off-Plan Transactions
Off-plan properties represented a substantial majority of the transactions, amounting to AED 1,526,125,487.60, which is approximately 69.46% of the total transactions. Within this category, flats were the most popular, with transactions reaching AED 1,405,898,360.88, commanding a commanding 92.36% of the off-plan market. Villas followed, with AED 102,756,527.00 (6.75%), and hotel apartments and rooms contributed AED 13,503,921.09 (0.89%).
Ready Property Transactions
The ready property market accounted for AED 746,061,544.82, or 30.54% of the total transactions. In this category, flats also took the lead with transactions worth AED 452,931,568.07, forming 67.69% of the ready property transactions. Villas, with transactions of AED 175,752,012.81, had a 26.27% share, whereas hotel apartments and rooms, with AED 40,430,126.42, accounted for 6.04%.
Conclusion
The dominance of off-plan transactions highlights investors' confidence in future developments within the city. Flats continue to be a preferred choice among both off-plan and ready property investors, signifying a robust demand for this type of living space in Dubai. The data also showcases the city's diverse real estate offerings, with significant investments in luxury accommodations such as villas and hotel apartments. The real estate market's health is evidenced by the high percentage of off-plan investments, indicating an optimistic future outlook for property development and investment in Dubai.