Dubai Real Estate Market Review 18-Jan-2024
Below are the latest real estate news and transactions.
Sharjah property demand grows after expats allowed to buy in freehold areas
Sharjah's real estate sector has experienced significant growth recently and continues to expand, according to Lamia Al Jewaied, head of studies and research bureau at Sharjah Real Estate Registration Department. This growth is attributed to several factors, including a law introduced in late 2022 allowing non-GCC nationals to own property in designated freehold areas. The sector's expansion is driven by robust infrastructure, investor-friendly laws, and a central location. Additionally, the introduction of new real estate projects has attracted a diverse range of international investors. Al Jewaied, speaking at the Acres 2024 exhibition, emphasized that the market is still in a growth phase and hasn't peaked yet. Buyers are also benefiting from a 50% discount on real estate registration fees during the exhibition. Abdulaziz Ahmed Al Shamsi, director-general of the department, noted the increase in population and demand for residential units, further boosted by a resolution allowing all nationalities to own real estate. Al Jewaied expects high property sales during the exhibition, noting particular investment interest from nationals of India, Pakistan, and Syria in Sharjah's industrial land.
Read the full article on Khaleej Times
Real estate dominates in new survey of top jobs in the UAE
The UAE's real estate boom has significantly impacted its job market, with property consultancy becoming the most sought-after position, as per LinkedIn's 'Jobs on the Rise' list. This trend aligns with Dubai's thriving real estate sector, which in 2023 surpassed London and New York in the market for homes valued over $10 million. Dubai recorded a 92.4% increase in sales of such homes, reaching 431 residences, with the total value of sales exceeding $7.6 billion.
The real estate surge has also boosted the super-prime market ($25 million plus homes), doubling the number of transactions in this segment. Other growing job roles in the UAE include partnership specialists, mortgage advisors, private client advisors in retail banking, and growth managers with SEO expertise.
Professionals in the UAE and Saudi Arabia show a preference for working in the region, citing lifestyle and professional growth opportunities. The UAE job market has seen a 0.3% annual employment increase, with many professionals actively seeking new opportunities, driven by desires for better salaries and work-life balance. The rising rents in the region are also a factor in jobseekers considering relocation.
There's a growing emphasis on skills over degrees in the UAE job market, with professionals focusing on upskilling and skill diversification to enhance their career prospects.
Read the full article on Zawya
UAE property tech firm Silkhaus secures multi-million financing for expansion
UAE proptech startup Silkhaus has secured multi-million dollar funding from San Francisco-based Partners for Growth (PFG) in a pre-Series A round, gaining access to an additional multi-million dollar credit line. This funding will fuel Silkhaus's expansion efforts. The Dubai-based company, operating in the $100+ billion global short-term rental industry, had previously raised $7.75 million in 2022.
Silkhaus collaborates with a range of real estate owners, from large institutional holders to individual owners of single apartments, providing them with technology-driven tools to manage and monetize properties. The company has grown by 120% in the past year, according to Founder and CEO Aahan Bhojani. This growth is attributed to their focus on financial sustainability and strong unit economics.
Silkhaus claims that property owners using their platform earn 20-40% more income than with traditional rental models. Armineh Baghoomian, Managing Director and Head of EMEA at Partners for Growth, highlighted Silkhaus's innovative use of technology in transforming how landlords and institutional investors monetize their assets.
Read the full article at Gulf News
Dubai Real Estate Transactions as Reported on the 17th of January 2024
UAE Real Estate Transactions Surge with Dominance in Off-Plan Sector
In a striking show of market dynamics, the United Arab Emirates' real estate transactions on January 17th soared to a robust AED 3.13 billion. The industry's pulse was strongly felt in the off-plan property sector, where a whopping AED 2.59 billion in sales was recorded, overshadowing the ready property transactions.
Leading the charge in the off-plan market, flat sales reached an unprecedented high, with a staggering AED 2.46 billion in transactions. The villa segment, while trailing behind, still posted a significant AED 116.87 million. Even the niche sector of hotel apartments and rooms attracted attention with a noteworthy AED 6.79 million in sales.
The ready property market, while less voluminous compared to its off-plan counterpart, presented a healthy turnover of AED 548.22 million. Sales of flats in this segment amounted to AED 404.89 million, indicating a steady demand for immediate occupancy homes. Villa sales contributed AED 75.55 million, whereas hotel apartments and rooms closed the count with AED 29.75 million.
This remarkable transaction pattern not only reflects a vigorous investment appetite but also signals a clear investor preference for flats, particularly within the off-plan market. The relatively modest sales in villas and hotel apartments and rooms suggest a more specialized interest, possibly reflecting the higher value of such properties.
These figures are a testament to the UAE's real estate market's vitality, highlighting unwavering investor confidence and a vibrant demand for residential spaces. The dominance of flat sales emphasizes the country's urban expansion and the market's adaptability to cater to a diverse range of investor needs and preferences.
Data Source: Dubai Land Department