Dubai Real Estate Market Review 13-Feb-2024
Below are the latest real estate news and transactions.
HNWIs dominate Dubai property sector
Dubai's real estate sector shows a promising outlook, attracting first-time buyers and being dominated by high-net-worth individuals. An Emirati family group is negotiating the sale of a luxurious property worth Dhs 250 million on Palm Jumeirah Island, among other deals totaling Dhs 985 million. This surge in real estate activity reflects Dubai's appeal to global investors, drawn by its advanced infrastructure and security, making it a prime destination for investment, work, and living. Negotiations include a unique villa and the "Seabird Residence," highlighting the city's luxury real estate market's growth and international appeal.
Read the full article on Gulf Today
Dubai’s luxury real estate gold rush lures global elite, outpacing London, LA for $10mn+ home sales
Dubai now boasts the highest number of luxury $10 million-plus property sales globally and the most branded residences worldwide, experts say.
Read the full article on Arabian Business
Dubai real estate sector sees $2.7bn of transactions this week, including $38m apartment in Island 2
Dubai real estate sector records more than 3,500 transactions this week.
Read the full article on Arabian Business
Rove inks partnership to develop two new properties in Dubai
Rove, in partnership with IRTH, is developing two new properties in Dubai, including Rove Home Marasi Drive at Business Bay, aiming to launch 3,000 branded residences in the next five years. This expansion follows the success of Rove Home Downtown, which sold out quickly. Rove Home Marasi Drive will offer a range of amenities, including fully furnished apartments, swimming pools, co-working spaces, and recreational facilities. The project targets innovative residential living, blending vibrant design with modern amenities like Sky Gardens, outdoor cinemas, and digital home solutions. Located near key Dubai landmarks, it signifies Rove's commitment to meeting the evolving needs of Dubai’s residents.
Read the full article on Zawya
Unique Properties unveils Luxury Market Outlook for 2024 after Dubai shatters previous forecasts by 25%
In 2023, Dubai's real estate market saw a significant surge, with deals increasing by 57% and accounting for over half of the GCC's total real estate value. Sales exceeded AED 400 billion across 129,000 transactions, marking a substantial rise from 2022. This growth has positioned the UAE as the top GCC destination for real estate investment in 2024. Property prices in Dubai have increased by 225% since late 2020, indicating a strong market momentum. With nearly 10,000 high-net-worth individuals moving to Dubai in the last two years, and an expected 80% increase in the centimillionaire population by 2033, the emirate's luxury real estate sector is set to expand further, supported by its strategic location, streamlined processes, and tax incentives. Unique Properties, an award-winning Dubai-based real estate agency, highlights Dubai's enduring appeal to overseas investors and its solidified status as a high-value luxury market post-pandemic.
Read the full article on Zawya
Indian, Chinese property buyers demand Vastu, Feng Shui-compliant homes
In Dubai, there's increasing interest among Indian and Chinese buyers in properties compliant with Vastu and Feng Shui, ancient practices aimed at enhancing harmony and prosperity in living spaces. Despite the demand, such properties are relatively rare, as developers typically do not prioritize these criteria. The market has seen a surge in requests for homes that adhere to these principles, particularly among Indian clients, who account for a significant portion of the demand. While finding fully compliant homes can be challenging, and such properties may command higher prices due to customization needs, the gap between supply and demand leads some buyers to consider custom-building or renovating homes to meet Vastu standards. Few developers focus on creating Vastu or Feng Shui-compliant homes, despite a clear niche market.
Read the full article on Khaleej Times
Dubai Real Estate Transactions as Reported on the 12th of February 2024
The analysis of real estate transactions in Dubai on February 12, 2024, presents a clear distinction between the off-plan and ready property markets, each contributing significantly to the total transaction value of AED 1,294,479,962.
Off-Plan Market:
The off-plan sector exhibited strong performance with a total transaction value of AED 713,399,010. This sector was dominated by flat sales, which amounted to AED 634,248,284, underscoring a high level of investor confidence in future residential developments. Villas followed with transactions worth AED 50,546,480, indicating a steady interest in luxurious, bespoke living spaces that are yet to be constructed. Hotel apartments and rooms, often purchased for investment purposes due to Dubai’s thriving tourism industry, also saw significant movement with deals amounting to AED 18,660,806. Together, these figures depict a robust off-plan market driven by a strategic long-term outlook of investors.
Ready Properties Market:
Transactions for ready properties totaled AED 581,080,951, reflecting an immediate demand for completed units. Within this sector, flats were the most sought-after, with transactions reaching AED 417,215,794, showcasing the readiness of buyers to invest in properties available for immediate occupancy or rental yield. The villa segment also showed a healthy market with transactions totaling AED 79,493,122, representing buyers' interest in upscale, ready-for-occupancy homes. Hotel apartments and rooms in the ready market achieved a transaction value of AED 37,963,291, catering to the immediate needs of the hospitality sector.
Market Contribution:
The off-plan market contributed approximately 55.1% to the overall transactions, while the ready market accounted for the remaining 44.9%. This data indicates a balanced distribution between investors' future-oriented purchases and those seeking current assets. The prevalence of flats in both markets reflects their central role in Dubai's real estate landscape, while the considerable transactions in villas and hotel accommodations highlight the diversity of the market and Dubai’s status as a versatile destination for living and tourism.
In conclusion, the combined activity in both the off-plan and ready markets elucidates the dynamic and multifaceted nature of Dubai’s real estate sector, appealing to a wide spectrum of investor preferences and immediate residential or commercial needs.
Data Source: Dubai Land Department