Dubai Real Estate Market Review 19-Jan-2024
Below are the latest real estate news and transactions.
Why UAE landlords are moving to lucrative short-term rentals
In Dubai, property owners are increasingly turning to short-term rentals over annual lease contracts due to the higher profitability and flexibility they offer. Jorge Felippe, a British investment manager, exemplified this trend by generating substantially higher returns from his Downtown Dubai apartment through short-term rentals compared to traditional yearly leases. Felippe's success led him to establish Ultimate Stay, a boutique holiday letting company. Similarly, Arshia Shroff, another landlord, found that short-term renting could earn her 20% more annually. Start-ups like Silkhaus are facilitating this shift by offering property management services for short-term rentals, handling everything from bookings to maintenance. The trend is supported by data showing a significant increase in registered holiday homes in Dubai. However, potential landlords are cautioned about the need for high-quality furnishings, potential vacancy risks, and the necessity of adhering to regulatory guidelines. Despite these considerations, the overall market sentiment remains positive due to Dubai's attraction as a tourist and expatriate destination.
Read the full article at The National
Dubai off-plan property market now offers everything from Dh750,000 homes - to Dh750m penthouse
In early 2024, Dubai's property market is experiencing a surge in off-plan launches, offering a wide range of options for every budget, from Dh750,000 apartments to penthouses worth Dh750 million and more. This marks a significant rebound from a quieter December 2023. Developers are confident in attracting buyers, not just for luxury projects but across various segments. Notably, the world's tallest branded residential tower, 'Aeternitas', starting at Dh1.6 million, exemplifies the trend of buyers paying premiums for off-plan properties over ready-to-move-in homes. Affordable options are also increasing, with new phases in communities like TownSquare and Rosalia Residences in Al Furjan offering units starting below Dh1 million. The market is expanding into areas like Dubai South and along the Mohammed Bin Zayed corridor. Despite the addition of over 60,000 units, demand still surpasses supply. Popular areas include Tilal Al Ghaf and Dubai Hills Estate, with significant sales and rental price increases. The luxury segment continues to thrive with high-end launches like the Armani residential project on Palm Jumeirah, highlighting Dubai's robust real estate market and investor confidence.
Read the full article at Gulf News
Eywa to unveil its luxury penthouses and Sky Collection apartments in massive event
The Eywa development, a new luxury residential project in Dubai, is set to be unveiled on January 24. This boutique building, developed by R.evolution, emphasizes well-being and innovative design, redefining urban living in Dubai. The launch event for the Eywa Penthouses and Sky Collection Apartments will take place at The Ritz-Carlton, DIFC's Samaya Ballroom, from 11 AM to 3 PM. Josh Altman, a top-performing luxury real estate agent and star of "Million Dollar Listing," will present the properties. Eywa consists of 46 apartments and 2 penthouses across 19 floors, offering two to five-bedroom residences with stunning views of the Dubai Canal, Downtown Dubai, and the Burj Khalifa. The development is noted for its health-conscious focus and unique position along the Dubai Water Canal. Interested parties are encouraged to register quickly due to limited availability for this exclusive event, either through the R.evolution sales team or the Eywa website.
Read the full article at Gulf Today
End-users continue to rise
In 2023, Dubai’s property market witnessed a rise in end-user buyers, from 38% to 44%. Residential sales transactions reached 120,742, up 38% from 2022, primarily driven by a 49% increase in apartment sales. Off-plan sales dominated, accounting for 54% of transactions, mainly in apartments. The total value of properties sold was Dh322 billion, a 52% increase from the previous year, with overall prices rising by 18%. The luxury market remained strong, with an 89% growth in transactions over Dh15 million, attracting global investors due to Dubai's favorable conditions. However, home deliveries were modest, at 34,810, insufficient to meet market demand, indicating a potential supply shortage. Richard Waind of Betterhomes suggests that the market is maturing, expecting future growth at sustainable levels despite a potential short-term supply shortfall.
Read the full article at Khaleej Times
Dubai Real Estate Transactions as Reported on the 18th of January 2024
Dubai’s real estate market experienced a significant transaction volume on January 18th, with a total of AED 2.18 billion in sales, signaling strong investor confidence and a thriving property sector.
A notable trend observed was the dominance of off-plan property transactions, which amassed a staggering AED 1.55 billion. This figure outpaced sales of ready-to-move-in properties, which totaled AED 632.5 million. Industry experts suggest this trend reflects investors' bullish outlook on the city's growth prospects and their preference for new developments.
Flats led the off-plan segment, recording sales of over AED 1.41 billion, indicating a robust demand for residential units in the pipeline. Villas were also part of this uptrend, contributing AED 111.68 million. Additionally, hotel apartments and rooms, though a smaller fraction, added AED 5.01 million to the off-plan sales volume.
Ready properties, while trailing behind off-plan sales, showed a healthy turnover. Completed flats reached sales of AED 436.9 million, followed by villas at AED 92 million and hotel apartments and rooms at AED 50.9 million. This demonstrates a continued demand for immediate occupancy homes and established real estate.
The substantial difference in sales between off-plan and ready properties could point to investor strategies favoring long-term growth over immediate returns. It also showcases Dubai's real estate market's capacity to cater to a wide array of investment appetites, from residential buyers to hospitality sector investors.
Data Source: Dubai Land Department