Dubai Real Estate Market Review 15-Feb-2024
Below are the latest real estate news and transactions.
Dubai real estate brokers must update listings within 3 days: RERA
The Real Estate Regulatory Agency (RERA), the regulatory arm of Dubai Land Department (DLD), warned real estate brokerage firms in the emirate to update their advertisments within three days to avoid penalties.
Read the full article on Gulf News
Dubai among the top global cities forecast to see the strongest growth in prime residential property in 2024
In 2023, Dubai led in prime residential capital value growth at 17.4%, outpacing the 2.2% average across 30 cities surveyed by Savills. Sydney and Dubai are expected to top performance in 2024, driven by growing high-net-worth populations. Dubai's growth is anticipated to slow to 4%-5.9% in 2024. The city also saw rental prices increase by nearly 10%, above the global city average of 5.1%. Factors contributing to Dubai's appeal include competitive pricing, a low cost of living, easy visa processes, and a warm climate. Global cities face varying impacts from economic conditions, with prime residential markets expected to see modest growth of 0.6% in 2024. Dubai stands out for its high rental yields and low property transaction costs, amidst broader global economic and real estate challenges.
Read the full article on Zawya
Spacious living arrives in Dubai with Farm Gardens Phase 2
Dubai's real estate market hit record highs in 2023, with increasing rents pushing expats towards investing in villas, notably in developments like Farm Gardens Phase 2 by Emaar. This community offers a mix of modern luxury and rustic charm, featuring sustainable living elements like a Hydroponics Greenhouse. With the success of similar projects, Farm Gardens is eyed by expats and investors for its customization potential and relatively low entry price of AED 1,099 per square foot. The project, offering 4 and 5-bedroom villas starting at AED 7.2 million, includes incentives like complimentary pool installation for early bookings and a charitable contribution with every sale, aiming for completion by March 2028.
Read the full article on Newswires
UAE's removal of minimum down payment for golden visas paves the way for diverse investor opportunities
The UAE is considering removing the AED 1 million minimum down payment for golden visa eligibility via real estate investment, aiming to attract more foreign investment and stimulate the real estate sector. This move is expected to diversify the investor pool, enhance property market engagement, and contribute to the UAE's economic development. Dubai's real estate market showed significant growth, with 1.6 million transactions and a 17% increase in activity year-on-year, leading to a transaction value of Dh634 billion. The change could further boost investment, particularly from international markets, aligning with the UAE's vision to create a business-friendly environment and establish itself as a global investment hub.
Read the full article on Zawya
Dubai ranks as leading global real estate market for luxury home growth potential in 2024 forecast
Dubai and Sydney are leading gains in the luxury housing sector globally.
Read the full article on Arabian Business
Saudi real estate: Residential property sales drop 16% during 2023
Riyadh’s property market remains stronger than other Saudi cities due to ongoing economic growth and population increases spurred by the Regional HQ programme.
Read the full article on Arabian Business
Saudi Arabia’s real estate prices rise by 0.7% in 2023: GASTAT
In 2023, Saudi Arabia's real estate price index saw a modest increase of 0.7%, mainly due to growth in the residential sector, with housing prices up by 1.1%. This rise was led by a 1.2% increase in land plot costs and a 0.8% rise in apartment prices, despite a slight decline in house and villa prices. The commercial sector slightly fell by 0.1%, with stable prices in commercial buildings and centers, while agricultural real estate prices dropped by 0.3%. The overall real estate index for Q4 2023 increased by 0.2% year-on-year, driven by a 0.6% rise in residential property prices. Saudi Arabia's real estate sector is seen as a crucial part of the economy, contributing significantly to the GDP and job creation.
Read the full article on Arab News
Dubai Real Estate Transactions as Reported on the 14th of February 2024
On the 14th of February 2024, the Dubai real estate market recorded a substantial total of AED 1,424,397,971 in transactions. These transactions were segmented into off-plan and ready properties, with a significant majority of the contributions coming from off-plan sales, specifically flats.
Off-Plan Property Transactions
Off-plan properties dominated the day's transactions, contributing AED 965,917,919, which is approximately 67.8% of the total real estate transactions for the day. The breakdown is as follows:
Flats: AED 885,251,917
Villas: AED 71,995,328
Hotel Apartments & Rooms: AED 7,063,572
Flats were the most significant contributors, accounting for over 92% of the off-plan transactions and 62.1% of the total daily transactions. This indicates a robust investor confidence in the future of the Dubai residential market, particularly in the apartment sector.
Villas and hotel apartments & rooms showed modest sales in comparison to flats, suggesting a more conservative investment approach towards these property types in the off-plan market.
Ready Property Transactions
Ready properties accounted for AED 458,480,052, making up 32.2% of the total transactions. The distribution is as follows:
Flats: AED 286,839,595
Villas: AED 118,516,443
Hotel Apartments & Rooms: AED 24,116,520
Within the ready property segment, flats also took precedence, representing 62.6% of the ready property transactions and 20.1% of the total real estate transactions. Villas followed, contributing to 25.8% of the ready property segment.
Conclusion
The data from 14th February 2024 indicates a strong market preference for off-plan flats, which may be reflective of a bullish outlook on Dubai's future real estate market. Ready properties, while significant, represented a smaller portion of the day's transactions, with flats again being the preferred property type.
This data could be indicative of current market trends, investor confidence, and the potential for future growth in the Dubai real estate market. The trend towards flats in both off-plan and ready segments suggests a focus on residential living spaces, which could be driven by factors such as urbanization, population growth, and investment in Dubai's residential infrastructure.
Data Source: Dubai Land Department