Dubai Real Estate Market Review 13-Mar-2024
On 12th March 2024, a total of AED 2,359,979,591.21 in transactions were recorded. Of this total, a significant majority, about AED 1,847,976,070.67 or 78.31%, were attributed to off-plan properties.
Dubai to increase property sizes after change in Golden Visa criteria sparks demand
The removal of Dubai's Dh1 million down payment requirement for Golden Visa eligibility has sparked a sharp rise in demand for properties worth Dh2 million, attracting a wider range of investors and prompting developers to increase apartment sizes. This policy change has made the Golden Visa, which grants a 10-year residency, more accessible, leading to increased foreign investment and encouraging tenants to become homeowners. Investors are now raising their budgets to meet the eligibility threshold, with a noticeable shift towards larger, more expensive properties.
Read the full article on Khaleej Times
Indians become largest real estate investors in Dubai
As India's economy expanded, doubling its GDP from $1.86 trillion in 2013 to $3.73 trillion, the wealth of its newly affluent citizens fueled a search for stable investment opportunities abroad. Indian investors have become the top buyers of residential real estate in Dubai, surpassing British and Russian counterparts. This trend is driven by a generational shift, with younger Indians, especially millennials and Generation Z, showing a strong preference for owning over renting. Real estate is now seen not just as a personal asset but as a means of wealth accumulation, with 61% of Indians preferring it over other investments. The affordability of foreign properties, due to skyrocketing prices in Indian cities, encourages this trend, with younger Indians increasingly investing in smaller, investment-grade properties abroad. This shift is expected to continue, with Indian investors poised to reshape the global real estate investment landscape.
Read the full article on The Eastern Herald
Dubai’s 3 new master communities set to boost villa, townhouse supply
Dubai's real estate landscape is set for expansion with the introduction of three new master communities in 2024, aimed at increasing the supply of villas and townhouses. Emaar has announced two of these communities, The Heights Country Club and Grand Club Resort, with a third by Damac to follow. Located along the E611 corridor in southwest Dubai, these developments are expected to address the current under-supply in the single-family home segment, which represents about 15% of new units in the market. Despite a modest price growth of 0.83% in February, the demand for off-plan properties, especially apartments, remains high, with sales reaching a record volume for the month. The report highlights a shift towards more transactions being registered with Title Deeds as completed properties, indicating a potential rebalance between off-plan and existing sales segments.
Read the full article on Khaleej Times
Expo City announces new luxury serviced apartments
The new Expo City Dubai property will feature 150 1- and 2-bedroom apartments, equipped with kitchens and balconies.
Read the full article on Arabian Business
First digital payment platform for UAE tenants and landlords launched
The UAE's first paperless direct debit marketplace, Direct Debit System, has partnered with Keyper, a technology-enabled property management platform, to launch the first digital rental payments platform in the UAE. This initiative replaces traditional post-dated cheque transactions with automatic bank deductions for rent, enhancing payment security and efficiency. It aligns with UAE's push towards modern payment methods and includes Keyper's "Rent Now Pay Later" service, offering monthly payment flexibility to tenants while ensuring landlords receive upfront payments. This digital shift aims to improve the rental process, reduce operational costs, and support non-resident property investors, despite current low adoption rates of digital rent payments.
Read the full article on Zawya
UAE construction market grows to $94 billion in 2023: Report
The UAE's construction market, valued at $94 billion in 2023, is expected to grow at an average annual rate of over 3% from 2025 to 2028, driven by investments in transport, renewable energy, and electric vehicle advancements. The residential sector, including single-family and multi-family housing, dominated in 2023 and anticipates continued growth in 2024 through significant infrastructure projects. Infrastructure construction, particularly in transport, was the second-largest market segment. Arabtec Holding and SNC-Lavalin Group Inc. were leading contractors and consultants, respectively. Notable developments include Aldar Properties' AED1 billion investment in UAE logistics and Azizi Developments' AED5 billion Burj Azizi tower project, underscoring the sector's dynamism and expansion focus.
Read the full article on Middle East Economy
This Ramadan, property buyers in Dubai can expect some discounts showing up in offplan sales
The Dubai real estate market experiences a surge in activity and property prices in the first quarter of each year, as buyers and tenants reassess their plans post-holidays, leading sellers to capitalize on the increased demand by raising prices. This pattern repeats after major seasonal events like Christmas, Ramadan, and summer. Contrary to the myth that the market slows down or prices drop during holidays, activity remains robust, with the off-plan sector sometimes offering more flexible buying options during Ramadan. The end of such seasons sees a significant price increase due to a supply shortage and a spike in demand, especially in prime segments. The advice for buyers is to act now to avoid competition and price hikes in the coming months.
Read the full article on Gulf News
Dubai Real Estate Transactions as Reported on the 12th of March 2024
In Dubai's real estate market on 12th March 2024, a total of AED 2,359,979,591.21 in transactions were recorded. Of this total, a significant majority, about AED 1,847,976,070.67 or roughly 78.31%, were attributed to off-plan properties, indicating a robust interest in investments in properties that are in development stages.
Breaking it down further, within the off-plan category, flats were the most dominant, with transactions worth AED 1,347,646,935.67. This represents approximately 72.90% of the off-plan total and 57.10% of the overall daily transactions. Villas also showed a strong performance in the off-plan market, contributing AED 461,923,620.00, or 24.99% of the off-plan transactions. Hotel apartments and rooms, though the smallest category within off-plan, added AED 17,346,195.00, accounting for approximately 0.94% of off-plan and 0.74% of the total daily transactions.
In comparison, ready properties accounted for AED 512,003,520.54 or about 21.69% of the total transactions for the day. Within this segment, flats led with transactions amounting to AED 378,526,322.91, making up 73.94% of the ready property total and 16.04% of the total daily transactions. Ready villas had a modest share with AED 83,341,610.83 in transactions, representing 16.28% of the ready property transactions and 3.53% of the day's total. Hotel apartments and rooms saw AED 20,970,145.00 in sales, which is 4.09% of the ready category and 0.89% of the total market transactions for the day.
The data suggests that investors in Dubai's real estate market are significantly inclined towards off-plan properties, with flats being the most popular investment. The interest in ready properties is less but still notable, especially for flats, which may be indicative of a demand for immediate occupation or rental income generation. The disparity between the investment in off-plan and ready properties could reflect investor confidence in the potential of Dubai's real estate market growth and the value of future property development.
Data Source: Dubai Land Department