Dubai Real Estate Market Review 14-Feb-2024
Below are the latest real estate news and transactions.
DAMAC Chair: Idea of U.S.-Chinese conflict keeps me up at night
Hussain Sajwani, founder of the real estate developer DAMAC Properties, says he worries about deteriorating relations between the U.S. and China.
Watch the interview on CNN
ZāZEN Gardens: 90% constructed and set to become UAE's first LEED Gold-certified residential development in April 2024
ZāZEN Properties highlights Dubai’s booming real estate market, with a notable 27% increase in sales, reaching over $9.6 billion last month. The surge is driven by the off-plan sector, expected to fuel residential growth through 2024, as demand continues to outstrip supply. Dubai’s transactions hit a record in 2023, with a 25% YoY increase in off-plan sales in January 2024 alone. Madhav Dhar emphasizes the role of sustainability and Sheikh Mohammed’s extension of the ‘UAE’s Year of Sustainability’ into 2024, underlining its significance across industries. ZāZEN Properties is advancing sustainability through projects like the LEED Gold-certified ZāZEN Gardens, aiming to reduce carbon emissions and generate onsite solar electricity, aligning with UAE’s sustainability goals.
Read the full article on Zawya
Modon opens region’s first smog-free tower in Abu Dhabi
Modon Properties and the Environment Agency - Abu Dhabi (EAD) have launched the region's first smog-free tower on Hudayriat Island, UAE. This innovation, previously seen in countries like China, the Netherlands, and Poland, aims to improve air quality and enhance residents' life quality through positive ionization technology, purifying 30,000 cubic meters of air per hour. As part of a pilot project to foster a clean, green future, this tower signifies Abu Dhabi's commitment to air quality and environmental sustainability. The project may expand based on the pilot's success, underlining the region's dedication to innovative solutions for a healthier living environment.
Read the full article on Zawya
Huge demand points to a promising future for Ras Al Khaimah real estate
Bayut's latest Ras Al Khaimah Market Report reveals a significant upturn in the real estate sector, with continued growth anticipated into 2024. The report highlights an increasing demand for both villas and flats, driving up property prices in popular areas. Key factors such as zero tax policies and full foreign ownership rights are attracting global investors, with projects like Cape Hayat and Al Marjan Island reporting sold-out inventories. The CEO of Bayut notes the dynamic market's potential for sustainable growth, fueled by government initiatives and strategic developments, particularly in the residential and hospitality sectors. Al Hamra Village, Al Marjan Island, and Mina Al Arab are among the top choices for buyers and renters, with noticeable price increases and high ROI, indicating Ras Al Khaimah's growing status as a real estate investment hotspot.
Read the full article on Gulf Today
Developer launches the ‘Ville 11’ in Masdar City
Burtville Real Estate has announced the launch of “Ville 11” in Masdar City, Abu Dhabi, offering 111 residential units in one of the world’s most sustainable urban communities. The project, reflecting the active Abu Dhabi real estate market, aims to meet the increasing demand for quality housing. Construction has begun, with completion expected by the third quarter of 2027. “Ville 11” will feature modern English designs, high-quality finishes, and smart, sustainable solutions. The development includes amenities such as a swimming pool, gym, health club, and a rooftop café, catering to a diverse investor base and showcasing Burtville’s commitment to innovation and sustainability in the UAE real estate market.
Read the full article on Gulf Today
RAK Properties hit Dh201.82 million net profit in 2023, shatter previous records
RAK Properties reported a significant increase in net profit for 2023, marking it as a breakthrough year with net profits rising to Dh201.82 million from Dh30.79 million the previous year. Revenue also surged to Dh1004.89 million, up from Dh408.22 million, demonstrating strong demand for its property and hospitality ventures. Total assets and equity grew substantially, reflecting the company's robust growth. The CEO highlighted 2023 as a year of strategic rebranding and exceptional financial performance, with successful residential sales and hospitality properties. The company plans to continue its luxury living expansion in Ras Al Khaimah, with upcoming ventures including a joint venture with Ellington Properties and the Nikki Beach Resort, further enhancing its luxury offerings.
Read the full article on Khaleej Times
Discover the UAE’s hidden real estate gem: Why investors are flocking to Ras Al Khaimah
The emirate offers more attractive property prices, with the potential of a greater upside.
Read the full article on Arabian Business
Gulf real estate sector seen performing well in 2024
The real estate sectors in Saudi Arabia, the UAE, and Kuwait are anticipated to show strong performance in the first half of 2024, driven by high oil prices and solid GDP growth, a Kuwaiti think tank reports. Saudi Arabia's real estate is expected to recover strongly, with projected GDP growth of 4% and oil prices estimated at $93 a barrel. The UAE's real estate sector is also set to benefit from a GDP increase of around 4%, with significant growth in hospitality, residential, and office activities. Kuwait's real estate sector is expected to maintain stability, with a positive outlook towards the end of 2024, supported by a 3.6% GDP growth.
Read the full article on Zawya
Abu Dhabi in advanced talks to develop Egypt’s Ras El Hekma
Some Egyptian state-run entities, along with Talaat Moustafa Group (TMG), could retain around a 20% stake in the 180-million-square-meter land.
Read the full article on Zawya
Dubai Real Estate Transactions as Reported on the 13th of February 2024
On February 13, 2024, Dubai's real estate market experienced a substantial volume of transactions totaling AED 1,280,055,727. The data reflects a vibrant property market with a significant emphasis on off-plan transactions, which comprised approximately 61.8% of the total transactions for the day, amounting to AED 791,046,770.
The off-plan market was dominated by flat sales, which accounted for AED 622,738,313. This is indicative of a robust demand for apartment living, which may be attributable to factors such as urbanization, population growth, or investor confidence in the development pipeline of Dubai. Villas followed suit with transactions worth AED 153,410,014, suggesting a healthy appetite for more spacious and private living accommodations, possibly driven by new family formations or an upscale shift in housing preferences.
Hotel apartments and rooms, while representing the smallest proportion of off-plan transactions with AED 11,647,341, still signify an investment interest in Dubai's tourism and hospitality sector, which is likely bolstered by the city's global appeal as a travel destination and its strategic initiatives to attract international visitors.
In contrast, the market for ready properties, which encompasses those that are constructed and ready for occupancy, constituted 38.2% of the total transactions, with a value of AED 489,008,957. Ready flats continued to attract buyers with transactions valued at AED 349,835,934, underscoring a sustained demand for immediate occupancy, perhaps fueled by end-users seeking to capitalize on competitive pricing, location advantages, or immediate rental income opportunities.
Ready villa transactions, which reached AED 94,137,845, reflect an ongoing interest in more luxurious and completed housing units, potentially from buyers looking for family homes or long-term investments in established communities.
Lastly, transactions for ready hotel apartments and rooms totaled AED 33,075,314, pointing to continued investments in the city's mature hospitality offerings, which may be appealing due to existing infrastructure, established operations, and immediate revenue-generating potential.
Overall, the figures indicate a dynamic real estate market in Dubai, with a clear inclination towards off-plan investments. This trend may reflect investor confidence in the market's future growth and the allure of new developments. The data also underscores the city's diverse property offerings, catering to various market segments from residential buyers to hospitality investors.
Data Source: Dubai Land Department