Dubai Real Estate Market Review 12-Mar-2024
On 11th March 2024, Dubai's real estate market recorded transactions totaling AED 2,581,773,027.83. An in-depth look into the data reveals a significant disparity between off-plan and ready properties
Property prices to increase up to 14% in 2024, says Binghatti CEO
Dubai's property market is projected to grow by 12-14% in 2024, spurred by a population increase, anticipated lower interest rates, and the attraction of more millionaires to the region, according to Muhammad Binghatti, CEO of Binghatti Holding. This growth follows a significant rally post-Covid-19, with 2023 seeing record prices for both apartments and villas, primarily driven by the ultra-luxury segment and an influx of high-net-worth individuals. Factors like population growth, employment rise, US Federal Reserve's potential interest rate cuts, and increased wealth migration to Dubai are expected to fuel this trend. Binghatti Holding, having recently listed a $300 million sukuk on Nasdaq Dubai, has invested in luxury real estate developments in partnership with high-end brands like Jacob & Co., Bugatti, and Mercedes-Benz, showing strong sales performance in these projects.
Read the full article on Khaleej Times
Dubai real estate market expected to cool amid global economic headwinds: S&P
Dubai's residential property market is poised for a slowdown in the next 12-18 months, impacted by increased supply and global economic challenges, says S&P Global Ratings. Despite this, Dubai developers are in a stronger financial position thanks to high pre-sales, which could mitigate the effects of the downturn. Over 85% of GCC-rated real estate companies have a stable outlook, but growth potential in Dubai is limited for the near term. In contrast, Abu Dhabi's market, having not experienced similar rapid price increases, faces a lower risk of downturn.
Read the full article on Zawya
What low-priced apartments can Dubai offer to buyers in 2024?
Dubai, renowned for its luxury residential market, also caters to mid-income professionals and entrepreneurs with properties ranging from $200,000 to $300,000. The demand for affordable housing, particularly units up to AED 1 million ($272,257), dominates the secondary and off-plan markets, constituting 35% of transactions. The expansion of the market has reached less central areas like Silicon Oasis and Sports City, which offer cost-effective options without compromising on amenities such as swimming pools and gyms. The most affordable options include studios and 1-bedroom apartments, both in the city and the outskirts, with varying prices influenced by location, infrastructure, and property type. Examples include a studio in Damac Hills 2 for $67,267 and a 1-bedroom apartment in Dubai South for $105,000, showcasing the variety of affordable living spaces available in Dubai.
Read the full article on World Wire
GCC real estate firms' credit quality stable after volatile years: S&P
S&P Global Ratings reports that GCC real estate companies now have stable credit quality, recovering from past volatility with improved profiles. This stability is driven by economic and population growth, a tourism rebound, and supportive oil prices. Despite different market dynamics across Gulf countries, most entities have stable outlooks, recovering from pandemic-related downgrades. The Dubai market, in particular, has seen rapid credit quality recovery since 2021 due to price increases and sales volume. Looking ahead, S&P expects GCC economic growth of 2%-3% in 2024, with real estate benefiting from population growth, tourism, and government reforms. However, challenges include geopolitical tensions, falling oil prices, and oversupply risks.
Read the full article on Trade Arabia
Dh500-million worth villas launched in MBR City; completion expected by 2026
Arista Properties launched the Dh500 million Wadi Villas project in Dubai's Mohammed Bin Rashid Al Maktoum City, featuring 30 luxury villas set to complete by 2026. These villas, ranging from 4 to 6 bedrooms and priced between Dh14 million to Dh40 million, cater to the high demand for spacious properties post-pandemic. The project, designed by HBA Architects with landscape by Coopers Hill, offers amenities like a co-working lounge, café, and private pools, aiming to provide privacy and luxury with internal courtyards and water features. This marks Arista's first in a series of luxury real estate ventures in Dubai.
Read the full article on Khaleej Times
Dubai developers must rework advertising no-objection certificates with their brokers
Dubai's real estate market faces a challenge with advertising permits, particularly regarding offplan property marketing agreements between developers and brokers. These agreements have led to misleading ads with fake prices and inventory, damaging developer reputations and market integrity. The solution proposed is to limit online ads to entire projects, not individual units, with new contract clauses preventing brokers from advertising specific units. Post-sale, advertising shifts to buyers, regulated by formal agreements to ensure ad accuracy. This reform aims to enhance transparency and protect consumers, marking a shift towards more reliable real estate advertising in Dubai.
Read the full article on Gulf News
Aman to make its debut in Dubai with the most expensive hotel
Aman is set to enhance Dubai's luxury hospitality landscape with the introduction of Aman Dubai, an all-suite hotel featuring Aman-branded residences. Promising its signature ultra-luxury experience, the property will boast a sprawling Aman Spa, various dining options, and an exclusive Aman Club, along with a private beach. Owned by Bright Start and developed by H&H Development, Aman Dubai enjoys a prestigious coastal location on Jumeirah Beach, spanning nine acres with designs inspired by the region’s heritage. Expected to open within the next three years, it aims to become the most expensive hotel in the U.A.E.
Read the full article on Hotels Mag
Dubai Real Estate Transactions as Reported on the 11th of March 2024
On 11th March 2024, Dubai's real estate market recorded transactions totaling AED 2,581,773,027.83. An in-depth look into the data reveals a significant disparity between off-plan and ready properties in terms of volume.
Off-Plan Properties:
The off-plan segment registered a total of AED 1,796,319,309.84, accounting for approximately 69.5% of the total transactions. Within this category:
Flats dominated the off-plan market with transactions worth AED 1,461,887,291.15, representing a striking 81.4% of the off-plan segment.
Villas followed with a contribution of AED 289,579,673.00, translating to 16.1% of the off-plan transactions.
Hotel Apartments and Rooms held a minor share, adding up to AED 34,799,741.32, which is approximately 1.9% of the off-plan total.
Ready Properties:
The ready property transactions amounted to AED 785,453,717.99, making up 30.4% of the overall real estate transactions. Within the ready property market:
Flats were the most transacted with a value of AED 520,242,751.98, comprising 66.2% of the ready property segment.
Villas showed a total of AED 107,353,125.54 in sales, accounting for 13.7% of the ready property transactions.
Hotel Apartments and Rooms closed with AED 61,909,683.00, representing 7.9% of the ready segment.
Conclusion: This analysis indicates a robust inclination towards off-plan properties, especially flats, which seems to be the preferred choice for investors and homebuyers in Dubai as of March 2024. Villas maintain a consistent yet smaller portion of the market, whether off-plan or ready. The hotel apartment and rooms category, though the smallest in both segments, suggests a niche but a present demand in the market. Overall, the real estate sector in Dubai continues to thrive with significant investment in the off-plan market, highlighting investor confidence in the future development and potential of the region.