Dubai Real Estate Market Review 21-Feb-2024
Below are the latest real estate news and transactions.
Dubai real estate prices up 20% but rent increases could slow down this year: CBRE
Dubai real estate prices jumped by more than 20 per cent last year, but rent hikes are slowly moderating.
Read the full article on Arabian Business
Sharjah property sector on solid track, records Dhs3.9 billion in realty deals
In January 2024, Sharjah's real estate sector witnessed substantial growth with transactions reaching Dhs 3.9 billion, marking a significant increase from Dhs 2 billion in January 2023. The month saw 5,412 transactions, doubling from the previous year's 2,999. This growth indicates Sharjah's rising prominence as a global real estate investment hub, supported by economic stability, favorable legislation, and attractive government incentives. The sector's diversity was highlighted by sales across residential, commercial, industrial, and agricultural segments, with notable activity in areas like Muwailih Commercial and Al-Sajaa Industrial. Additionally, the Sharjah Chamber of Commerce and Industry explored investment opportunities with an Indian delegation, aiming to strengthen Sharjah-India business ties and capitalize on the UAE-India economic partnership agreement.
Read the full article on Gulf Today
Strong performance continues to be seen in the UAE’s residential market on the back of strong demand levels
In 2023, Abu Dhabi's residential transactions surged by 77.8%, driven by significant growth in both off-plan (104%) and secondary market sales (27.7%). Average apartment prices slightly rose by 1.1%, while villa prices remained stable. Apartment and villa rents also saw modest increases. The city delivered 2,961 units, with more expected in the coming year, mainly on Yas Island and Al Maryah Island. Meanwhile, Dubai witnessed a 20.1% rise in residential prices and a high volume of transactions, setting a new record despite a monthly slowdown in December. Rental growth in Dubai is expected to continue but at a moderated pace. The UAE's residential market overall shows strong demand and price growth, with expectations of continued positive performance in both Abu Dhabi and Dubai.
Read the full article on Zawya
Abu Dhabi's real estate market continues its upward trajectory in Q4 2023
ValuStrat's Q4 report on Abu Dhabi's real estate market showcases growth across residential, commercial, hospitality, and industrial sectors. The residential market saw a 4.2% annual and 1% quarterly increase, with villas and apartments experiencing steady price rises. Rental values also grew, indicating strong demand. The report highlights a notable completion of new apartments and significant price increases in the off-plan market. The commercial sector, particularly office sales prices and rents, demonstrated exceptional growth. The hospitality sector reported significant revenue increases, while the industrial sector saw rising warehouse prices and rents, reflecting high demand in logistics and warehousing.
Read the full article on Zawya
After RERA crackdown, Dubai property market sees sharp drop in fake online listings
Dubai's Real Estate Regulatory Authority (RERA) is enforcing new transparency measures in the residential property market, leading to a significant decrease in online listings. These measures target the elimination of multiple listings for the same property with varying prices and require real estate agencies to verify that listings are still valid using a document called 'Form A'. This initiative aims to correct price distortions and provide a more accurate view of the market, thereby increasing buyer and seller confidence. Industry professionals have noted a positive impact, anticipating more realistic price adjustments and improved market transparency.
Read the full article on Gulf News
UAE developer Binghatti plans bond market debut
Binghatti Holding Ltd, a UAE developer planning the world's tallest residential tower, is entering the bond market for the first time with a debut Islamic bond (sukuk) sale. Rated B+ by Fitch Ratings, the company aims to raise a benchmark amount through a three-year, dollar-denominated sukuk, following similar moves by other UAE firms like Damac and FIVE Holdings. This effort coincides with a trend where sukuk accounted for over half of the $93 billion issued in the Gulf Cooperation Council region last year. Binghatti, known for its ambitious high-tower projects including the Burj Binghatti Jacob & Co Residences, faces credit constraints due to its focus on speculative sales and major projects.
Read the full article on Alarabiya News
Restatex kicks off in Riyadh with $640m in real estate deals
At the Restatex Real Estate Exhibition in Riyadh, Saudi developers secured funding deals worth over $640 million and launched three property development funds totaling more than $267 million. This event highlighted the property sector's importance in diversifying investment sources, aligning with Saudi Arabia's Vision 2030. The exhibition, inaugurated by the Minister of Municipal, Rural Affairs, and Housing, featured real estate leaders and stakeholders, and emphasized affordable, contemporary housing for Saudi families. It also served as a forum for discussing real estate development, safety, sustainability, and innovation. Despite a 17% drop in Saudi Arabia's real estate transaction volumes in 2023, Riyadh saw a 7% increase, contrasting with declines in Jeddah and Dammam.
Read the full article on Arab News
Dubai Real Estate Transactions as Reported on the 20th of February 2024
On the 20th of February 2024, the Dubai real estate market reported a total transaction volume of AED 2,064,351,716. The market demonstrates a robust preference for off-plan properties, which command a significant majority of the transaction value. In contrast, ready properties, while still substantial, contribute a lesser portion to the overall transaction volume.
Off-Plan Property Transactions:
Off-plan property transactions stand at AED 1,495,278,901, making up approximately 72% of the total transaction value. The demand is particularly high for off-plan flats, with a transaction value of AED 1,012,138,975, which alone accounts for nearly half (49%) of the total market transactions on this date. Villas also show strong performance in the off-plan sector, with transactions amounting to AED 465,682,563. Hotel apartments and rooms, while the smallest segment within off-plan transactions, still contribute AED 11,953,363 to the total.
Ready Property Transactions:
Ready property transactions sum up to AED 569,072,815, around 28% of the total transaction volume. Among ready properties, flats lead with AED 396,364,135 in sales. Villas follow with a significantly lower transaction volume of AED 87,206,284. Hotel apartments and rooms have the least transaction value at AED 38,279,766.
Analysis:
The data indicates a robust investor confidence in the off-plan market, signifying a positive outlook on the future of Dubai’s real estate growth and a strong development pipeline. The prominence of off-plan flat transactions suggests a high demand for urban living spaces and investor trust in new developments.
Conversely, the ready property sector, while less prominent than off-plan, still reflects a healthy market with considerable liquidity. The lower transaction volumes for ready villas and hotel apartments and rooms may indicate a more mature segment with less turnover or could be reflective of a higher threshold for investment, as these properties are typically more expensive on a per-unit basis.
Conclusion:
The Dubai real estate market on 20th February 2024 shows a strong preference for off-plan properties, particularly flats, indicating a vibrant market with a forward-looking investment approach. Despite a smaller share, the ready property market maintains a notable presence, underscoring a balanced real estate environment. This distribution suggests a dynamic market with opportunities for both immediate occupancy and investment in future developments. The overall high transaction volume underscores Dubai's continued appeal as a leading destination for real estate investment.
Data Source: Dubai Land Department