Dubai Real Estate Market Review 20-Feb-2024
Below are the latest real estate news and transactions.
Have Dubai property prices reached their peak?
Dubai's residential property market is poised for continued growth in 2024, albeit at a slower pace, with experts predicting a moderation in price increases due to favorable interest rates, long-term residency policies, and stringent government regulations. The market, which saw significant value and volume sales records last year, is expected to see a growth rate shift from double-digit to single-digit, specifically between 5% and 7%. The ValuStrat Price Index reported a 19.9% growth in property values in 2023, with areas like Discovery Gardens and Jumeirah Islands leading the surge. Despite the high delivery of units, concerns of a property bubble are dismissed by experts, who attribute market maturity to regulatory measures and a balanced supply-demand dynamic. The outlook remains positive, buoyed by global investor interest, controlled supply, and a shift towards long-term residency, indicating a stable and maturing market landscape.
Read the full article on MSN
New law announced regarding federal properties
The UAE has introduced Federal Decree-Law No. 35 for 2023 to enhance the management and development of federal properties, aiming to improve the legislative framework for inventorying and handling government assets, including real estate and other federal properties. The law focuses on optimizing the use of federal assets, promoting sustainable growth, and improving the country's global competitiveness and credit rating. It mandates the creation of an electronic platform for cataloguing federal real estate, enhancing transparency and asset protection. The decree-law, which will replace the 2018 law on federal real estate properties, is set to take effect on March 28, 2024, aligning federal asset management with global best practices and local urban planning standards.
Read the full article on Khaleej Times
UAE residential real estate leasing and buying trends
The UAE real estate market, particularly in Dubai, has seen a significant recovery and growth post-pandemic, with 2023 marking a year of record sales, capital growth, and increasing rents, yielding attractive returns. Residential sales in Dubai soared with a 27% increase for ready homes and a 22% rise in off-plan sales, alongside a 25% jump in mortgage transactions. Villa markets experienced a notable demand surge, doubling in value since the pandemic, while the apartment sector began its recovery, showing a 15% increase in capital values by the end of 2023. Abu Dhabi also witnessed positive trends, albeit at a different pace, with substantial growth in off-plan sales and gradual increases in rental and capital values. The outlook for 2024 suggests continued strength in Dubai's real estate market, albeit at slower growth rates, with a particular emphasis on the apartment market, whereas Abu Dhabi expects modest price increases in villas and stable apartment prices, with potential boosts from lower mortgage rates.
Read the full article on Middle East Economy
Dubai real estate sales top $15bn already this year, top ten transactions reach $1.4bn
Top 10 Dubai real estate transactions so far this year reach $1.4bn in value, says W Capital.
Read the full article on Arabian Business
UAE real estate sector seeing massive upsurge in women investments with $25bn recorded in 2023
Emirati, South Asian and Far East Asian investors are leading the table of women buyers in the Emirates’ real estate market with a whopping 53.9 percent jump from 2022.
Read the full article on Arabian Busines
Headway NOVA: New Investing in Real Estate
Headway NOVA launched in Q4 2023, offering a novel service for investing in tokenized real estate via its app, where users can buy digital shares, or tokens, starting from $50. Secured by blockchain technology, these investments are accessible to a broad audience, aiming to democratize real estate investment. Headway, a licensed financial firm, underpins NOVA, which leverages both traditional and decentralized finance to provide a user-friendly, transparent, and profitable investing experience. Investors gain from both the property's long-term value appreciation and rental income, with the added advantage of low entry costs and simplified asset management handled by the NOVA team.
Read the full article on Big News Network
Visa, Checkout.com and Stake launch innovative cross-border funding solution for real estate investment in UAE
Visa has teamed up with Checkout.com and Stake, a leading digital real estate investment platform in the MENA region, to launch a groundbreaking cross-border account funding solution using Visa Direct. This collaboration marks the first of its kind in the GCC, allowing users to easily upload funds to their Stake accounts for investing in UAE's prime rental properties. The solution offers a seamless, secure, and quick way for both regional and international investors to enter the UAE real estate market, which is witnessing significant growth. It simplifies the investment process, enabling year-round access to the market and promoting the democratization of real estate investments. This initiative is part of Visa's commitment to facilitating global money movement and represents a significant innovation in real estate transactions in the region.
Read the full article on Zawya
DAMAC announces massive new tower ‘The Sapphire’
The Sapphire by DAMAC will offer views of the Dubai Canal, Sheikh Zayed Road, and the Arabian Sea.
Read the full article on Arabian Business
Dubai Real Estate Transactions as Reported on the 19th of February 2024
On the 19th of February 2024, the Dubai real estate market recorded total transactions worth AED 1,929,747,169. These transactions are segmented into off-plan and ready properties, contributing to the overall market dynamics in distinct ways.
Off-plan property transactions accounted for AED 1,123,685,213, which is approximately 58.2% of the total transactions for the day. Within this category, flats dominated the market, contributing AED 873,419,196 or 77.7% of the off-plan transactions. Villas followed, with a substantial input of AED 226,235,225, which represents 20.1% of the off-plan segment. Hotel apartments and rooms, while the smallest contributor within off-plan properties, still presented a noteworthy figure of AED 16,129,196, making up the remaining 1.4%.
Ready properties represented 41.8% of the total transactions, with an aggregate value of AED 806,061,956. Among ready properties, flats were the most significant contributor with AED 607,924,339, constituting 75.4% of the ready property transactions. Villas accounted for AED 153,750,528, or 19.1% of this segment. Hotel apartments and rooms, similar to the off-plan category, had the least share, albeit a notable one, amounting to AED 16,517,812, or 2% of the total for ready properties.
The data indicates a robust preference for off-plan flats in Dubai's property market, which could be attributed to investor confidence in future market growth or the availability of favorable developer terms. The readiness of the market to invest in off-plan villas also suggests a healthy appetite for luxury or larger family homes, which are anticipated to appreciate in value.
The strong performance of ready flats in the transactions underlines an enduring demand for completed units, likely driven by immediate occupancy needs or the investment returns from the rental market. The lesser but significant engagement with ready villas underscores a market segment with interest in immediate property utilization, possibly influenced by the lifestyle or space advantages that villas offer.
In conclusion, the Dubai real estate market on the 19th of February 2024 reflected a buoyant investment climate, with a marked inclination towards off-plan flats. The trends suggest a market with diverse investor goals and a balanced demand across different property types. The continued investment in both off-plan and ready properties underscores the confidence in Dubai's real estate market's potential for both immediate and future returns.
Data Source: Dubai Land Department