Dubai Real Estate Market Review 10-Jan-2024
Below are the latest real estate news and transactions.
Aldar acquires Dubai’s 7 Central and land plot to develop logistics space for $272mln
Aldar, an Abu Dhabi-listed real estate company, has acquired the 7 Central logistics hub in Dubai Investments Park and an adjacent land plot from Seven Seas Steel Industries LLC for 1 billion UAE dirhams ($272 million). This purchase, announced in a statement to the Abu Dhabi Securities Exchange (ADX), marks Aldar's expansion in the logistics sector following its initial investment in the Abu Dhabi Business Hub (ADBH) in 2022. The company plans to develop 233,000 sqm of new Grade A logistics facilities across the UAE, including logistics parks and single-tenanted facilities in Dubai, amounting to 200,000 sqm of gross leasable area. The existing Abu Dhabi warehouse property hosts tenants like Etihad, Mubadala, and Twofour54. Talal Al Dhiyebi, Group CEO of Aldar, highlighted the robust demand for high-grade logistics facilities in the UAE, underscoring the strategic nature of this acquisition.
Read the full article at Zawya
World’s tallest residential clocktower in Dubai soon
London Gate, a UAE real estate developer, in partnership with Swiss luxury watchmaker Franck Muller, has unveiled the Franck Muller Aeternitas, the world's tallest branded residential clocktower, located in Dubai Marina. With a sales value exceeding Dhs2 billion, the tower stands at 450 meters and redefines luxury living. It features a Franck Muller clock at its summit, symbolizing exceptional craftsmanship and innovation.
Eman Taha, CEO of London Gate, emphasizes the company's commitment to iconic architecture and exclusive lifestyle, with plans to introduce properties worth over Dhs 8 billion in Dubai. The 106-floor Franck Muller Aeternitas offers a range of residences, including Sky Mansions, Sky Villas, and one to three-bedroom units, starting at Dhs 1.6 million. A flexible payment plan is available through a partnership with One Broker Group.
Erol Baliyan of Franck Muller highlights the tower's embodiment of timeless elegance and luxury. Located in the vibrant Dubai Marina, near Palm Jumeirah and other prime destinations, the tower offers amenities like a Zen garden, cigar lounge, private cinema, and concierge services. The grand handover is scheduled for Q2 2027, marking a new era of luxury living in Dubai Marina.
Read the full article at Gulf Today
Saudi Arabia introduces system for selling and renting off-plan real estate projects
The official newspaper Umm Al-Qura published a new system for the sale and rental of off-plan real estate projects in Saudi Arabia, as approved by the Council of Ministers. This system mandates that real estate developers must be registered in the Developer's Register to engage in selling or renting off-plan projects, including those affiliated with government entities. It applies to activities involving the collection of funds from buyers, renters, or financiers.
The system prohibits advertising these projects or organizing related events unless the project is licensed by the competent authority. Developers must obtain a special license for each project and are required to start construction within six months of licensing, ensuring completion by a specified deadline. If a developer fails to deliver on time without justification, buyers are entitled to compensation.
In unforeseen circumstances preventing project completion, the competent authority will take measures for project completion or liquidation, refunding the amounts paid. Developers and landowners are barred from disposing of shared parts of the project before division and must comply with regulations after division.
Violations, such as unlicensed sale or rental, misrepresentation, misuse of funds, or non-compliance with escrow account rules, can lead to penalties including up to 5 years imprisonment, fines up to SR10 million, or both.
Read the full article at Zawya
Dubai Real Estate Transactions as Reported on the 9th of January 2024
Dubai Real Estate Market Sees Over AED 1.2 Billion in Recent Transactions
In a vibrant display of economic resilience, the Dubai real estate market has recorded transactions worth over AED 1.27 billion, signaling robust activity and investor confidence.
Flourishing Off-Plan Market
A significant portion of the activity was centered on off-plan properties, which amounted to AED 732 million. This enthusiasm for properties still under development reflects a market that is optimistic about the future of Dubai's real estate landscape.
Leading the off-plan sales, flats saw transactions of AED 602 million, suggesting a strong investor preference for this property type, likely due to their appeal to a wide range of demographics and their potential for liquidity.
Villas also performed well in the off-plan sector, with sales reaching AED 126 million. This indicates a demand for more luxurious, spacious, and private dwellings.
Hotel apartments and residences, although the smallest segment in off-plan transactions at AED 3.4 million, highlighted a niche market that caters to the hospitality industry and short-term residency options.
Steady Demand for Ready Properties
The market for 'Ready' properties—those completed and available for immediate occupancy—also showed considerable traction with a total of AED 538 million in transactions. This demonstrates a sustained demand for properties that can provide immediate utility or return on investment.
Apartments again were the frontrunners with AED 386 million in sales, underpinning the trend towards urban living solutions in the region's high-rise landscapes.
Villa sales in the 'Ready' category reached AED 66 million, a figure that, while smaller in comparison to flats, still points to a significant interest in family-centric living spaces.
Hotel apartments and residences saw transactions of AED 42 million, indicating a tailored demand within the tourism and business sectors for fully serviced living solutions.
Market Implications
The numbers reveal a Dubai real estate market with a strong appetite for both immediate and future property investments, particularly in the apartment sector. The trend indicates a dynamic market that caters to diverse needs, from urban living to luxury and hospitality-focused real estate.
The data suggests that investors are not only interested in the immediate gratification of 'Ready' properties but are also willing to bet on the future of the UAE's real estate developments. This balanced investment across various property types presents a picture of a healthy and forward-looking market.
As the UAE continues to attract global attention, its real estate market emerges as a key barometer of economic vitality and a beacon for potential growth, offering a variety of options to investors and end-users alike.
Data Source: Dubai Land Department