Dubai Real Estate Market Review 12-Jan-2024
Below are the latest real estate news and transactions.
Dubai real estate: Apartment rents to rise further on revised RERA rates, says report
The real estate cycle in Dubai is expected to enter a new phase, with a resurging apartment market and more tempered growth in the villa market
Read the full article at Arabian Business
Dubai average property prices to remain steady in 2024
The Dubai property market, after experiencing a significant rally in prices over the past few years, is now showing signs of stabilization. Industry executives predict that average property prices will either remain steady or witness modest growth following a three-year rally. The luxury segment, however, is expected to see some growth due to demand from high-net-worth individuals and a limited supply, though this growth is anticipated to be slower than last year. Michael Lahyani, founder of Property Finder, expressed a preference for stable prices to allow the market to adjust to the recent appreciations. He anticipates a 15-20% growth in transactions this year, a rate slower than that of the previous year. Lahyani also mentioned that luxury properties might continue to experience double-digit price growth. Ari Kesisoglu, president of Property Finder, expects transaction volumes to remain steady in the coming months but noted that prices are highly volatile based on location, with significant fluctuations possible even within small areas.
Read the full article at Khaleej Times
Dubai’s property market is bracing for a slowdown
Dubai's property market, currently experiencing a surge in prices and rentals, may be approaching a turning point. After years of renting, Dina Habib and Karim Yusuf, an Egyptian couple, bought a property in Dubai for 1.7 million dirhams and are now planning to sell it for a 26% premium, aiming to upgrade to a larger home. The market has been buoyed by wealthy investors and favorable government policies, resulting in a 42% increase in rentals and a 33% jump in home prices since January 2020, according to CBRE Group Inc.
However, analysts, including those from Morgan Stanley and S&P, predict a potential moderation in the market's growth. S&P forecasts a 5-7% rise in home prices this year, followed by a 5-10% decline in the next 12-18 months due to global economic uncertainties and increased housing supply. Despite the current market strength, there are signs of buyers downsizing and a slight cooling in rental price increases. Analysts also note that while the population growth supports the market, factors like Federal Reserve interest rate cuts and the percentage of mortgage transactions could impact future trends. Developers are adjusting to these changes, with a record number of new sales and launches, and expectations of delivering around 40,000 properties this year and in 2025 compared to 15000-30000 in the previous years.
Read the full article at The Malaysian Reserve
Damac unveils aqua-themed apartment complex at Lagoons
Damac Properties, a luxury project developer in the UAE, has launched Damac Lagoon Views, its first apartment complex in the Damac Lagoons master community in Dubai. The complex, comprising ground plus six floors, offers one- and two-bedroom apartments with amenities that align with the community's Mediterranean theme. Residents can enjoy relaxation and recreational experiences like beauty hills, a honey bar for wellness products, hammocks over lagoons, an outdoor spa, an aqua boho lounge, and an olive tree garden serving as a wedding venue. The centerpiece is the Flamenco Gardens concert stage, alongside unique features like an aqua opera school pavilion and a volcanic stone park. Additional attractions include a beach club, glow lounge, board games pavilion, kids area, various F&B experiences, a Lagoon Rain Party Zone, and an aqua gym with a running track. Mohammed Tahaineh, General Manager of Projects at Damac, emphasizes the project's commitment to offering unparalleled experiences, blending residence with lifestyle. Damac has invested nearly AED7 billion in Damac Lagoons, including infrastructure and villa construction.
Read the full article at Zawya
Sales of over Dh5 million and Dh10 million properties reach record level
In 2023, Dubai's real estate market saw record-breaking sales in high-value properties, but overall sales in prime and super-prime segments declined. CBRE reported that transactions for properties valued over Dh5 million and Dh10 million increased by 54.5% and 68.4% respectively, totaling 10,296 and 3,806 sales. Notably, off-plan sales dominated these segments, comprising 67.2% and 70.8% of the total transactions. Despite this, total sales volumes in prime and super-prime areas (including Downtown Dubai, Emirates Hills, Jumeirah Bay Island, Palm Jumeirah, and District One) decreased by 15.5% and 3.1%, respectively.
Palm Jumeirah led in both market segments, with significant sales of high-value units. Average prices in the prime segment rose by 22.5% to Dh4,604 per square foot, with significant price growth in Jumeirah Bay Island and District One. The average sale value in these areas was Dh28.3 million. In the super-prime segment, average prices increased by 20.4% to Dh4,900 per square foot, with the highest price hikes in Jumeirah Bay Island and District One, and an average selling price of Dh34.1 million.
Taimur Khan of CBRE anticipates continued strong price growth in these segments, albeit at a slightly tapered rate, due to the limited new supply.
Read the full article at MSN
Dubai Real Estate Transactions as Reported on the 11th of January 2024
Dubai's Real Estate Market Booms with Over AED 1.5 Billion in Transactions
The Dubai real estate market has reported transactions amounting to AED 1,545,643,412. This includes both off-plan and ready properties.
Off-Plan Property Sales Dominate the Market
Off-plan property sales have reached AED 1,121,149,534. Within this category, flat sales have accounted for AED 1,068,376,392, villa sales for AED 32,295,720, and hotel apartments and residential sales for AED 14,126,372.
Ready Properties Maintain Presence in Sales Figures
Transactions for ready properties have totaled AED 424,493,878. Sales of flats have made up AED 295,569,190, villas have totaled AED 79,579,634, and hotel apartments and residential units have reached AED 15,822,217 in sales.
Data Source: Dubai Land Department