Dubai Real Estate Market Review 23-Jan-2024
Below are the latest real estate news and transactions.
Dubai house prices surge up to 21% on ‘unprecedented boom’
In 2023, Dubai's property market experienced a significant rise in prices, driven by a surge in local and international investors. This trend, reported by UAE property portal Bayut, resulted in increased sales prices for apartments and villas, especially in prime neighborhoods. Key factors include Dubai's economic recovery and its status as a global business hub. The market saw a 42% rise in rents and a 33% increase in property prices since January 2020. Interest varied across property segments, with areas like Dubai Marina and Dubai Hills Estate attracting luxury investors. Transaction prices rose across budget-friendly, mid-tier, and luxury properties. A total of 132,628 property transactions worth Dh409.8 billion were recorded. Return on Investment (ROI) analyses showed high rental yields in several areas, making them attractive for investors. Overall, Dubai's real estate market demonstrated robust growth and investment appeal in 2023.
Read the full article at Khaleej Times
Residential plot prices jump up to 60% as some areas reach their full capacity
In Dubai, plot prices for villa and residential building development have surged by up to 60% post-pandemic, with high demand in areas like Business Bay, Downtown, Marina, and Palm Jumeirah. These prime locations are nearing or have reached capacity, leading to a scramble for the remaining plots. Beachfront properties, especially along the E-11 highway, have seen even greater price increases.
This boom has attracted new developers from Europe, Asia, and the Middle East, further fueling demand. Large-scale projects like The Oasis by Emaar and Venice by Azizi Developments are driving demand for residential projects. Luxury areas like Jumeirah Bay, Palm Jumeirah, Pearl Jumeirah, and La Mer South Island have seen average price hikes between 25% and 50%. Non-beachfront and secondary areas are also experiencing significant increases.
Rizwan Sajan of Danube Group notes that while most areas have seen 20-30% price rises, some have spiked by 50-60%. He anticipates further increases in Business Bay and Downtown, where plots are scarce. Projects like Danube's Oceanz and Bayz are expected to yield high returns, especially for sea-facing properties.
John Allen of Asteco highlights the strong demand for residential and commercial plots in areas like Jumeirah Bay, Palm Jumeirah, Business Bay, and along the Dubai Water Canal, with some experiencing a 60% increase in a year. Established communities like Emirates Hills are reaching full capacity, and while plots are rare in prime locations, other areas like Jebel Ali Hills and JVC still offer options.
Read the full article at Khaleej Times
Al Habtoor launches its 253m waterfront masterpiece in Dubai Marina
The tower covers a footprint of 2,593m2 and consists of G+49 stories. The luxury ceremony took place at the Garden Lawn at Habtoor Grand Resort with the attendance of Khalaf Ahmad Al Habtoor; Founding Chairman of Al Habtoor Group, Mohammed Al Habtoor; Vice Chairman & CEO of Al Habtoor Group, AHG management, VIP guests, real estate agents, brokers, and media representatives.
Read the full article at Construction Week
Indians, Russians and British buyers are Dubai's top property investors in 2023
In 2023, Indian property investors became the top buyers in Dubai's real estate market, surpassing Russians and British, according to Betterhomes. This marked a shift from 2022. Dubai's attractive real estate market, driven by high net-worth individuals and a growing expatriate population, recorded significant price increases in both villas and apartments. Key areas like Arabian Ranches, Dubai Hills Estate, and Jumeirah Village Triangle saw villa prices rise by 15 to 30%, with Palm Jumeirah experiencing a notable 74% increase. Apartment prices also rose significantly in areas like Downtown Dubai and Dubai Hills Estate.
Dubai's appeal as a global haven for stability attracted more investors from countries like Egypt, Lebanon, Pakistan, and Turkey. The top investor nationalities also included Egyptians, Lebanese, Italians, Pakistanis, Emiratis, French, and Turkish. Additionally, a study by India Sotheby’s International Realty indicated Dubai as the most favored overseas investment destination for Indian investors, followed by the US.
Read the full article at Khaleej Times
Dubai’s new towers to have colour fountain, rainforest retreat, organic farm
Aqua Properties launched The Central Downtown, a mixed-use development in Arjan, set to complete by 2026. Occupying the largest land parcel in Arjan, this project includes four towers atop a 150,000 sqft shopping mall on a 300,000 sqft plot. It will offer 1,168 residential units in studio, 1-bedroom, 2-bedroom, and 3-bedroom configurations, along with retail stores. The development is part of Aqua Properties' Dh3 billion investment in Dubai.
The Central Downtown features unique amenities like a golf simulator, wave pool, jacuzzi, and multipurpose hall. Residents will have access to a variety of recreational facilities, including a BBQ area, color fountain, dog park, jogging track, kids' play area, mini golf, and more. The project also includes an outdoor gym, organic farm, padel tennis, a rainforest retreat, rock climbing, table tennis, and a Zen garden. Additional services like a beauty salon, business center, daycare, and health club are included. Aqua Properties aims to provide an enriched lifestyle with everything needed within the community.
Read the full article at Khaleej Times
DMCC and Danube properties partner to launch USD 545 million residential project in thriving JLT district
DMCC, Dubai's flagship free zone authority, has partnered with Danube Properties to introduce a new residential project in the Jumeirah Lakes Towers (JLT) district. This project, featuring twin 65-storey towers, will add 1,200 residential units across 1.7 million square feet, valued at around USD 545 million (AED 2 billion). The towers, currently in the design phase, will be located near DMCC’s Uptown Dubai district, enhancing JLT’s status as a prime mixed-use community.
Ahmed Bin Sulayem of DMCC highlighted the high demand for premium residential properties in JLT, while Danube Group's Rizwan Sajan emphasized the strategic importance of this partnership. This follows the success of their prior project, Viewz, valued at AED 1.4 billion and now fully sold. In 2023, DMCC collaborated with various developers to launch several commercial and residential projects in JLT and Uptown Dubai, contributing significantly to Dubai's attractiveness for foreign direct investment.
Read the full article at Emirates 24/7
Majid Al Futtaim breaks ground on AED3bn Tilal Al Ghaf project
Alaya and Elysian Mansions are expected to be completed by 2026.
Read the full article at Arabian Business
Dubai residential real estate predicted to soar to new heights in 2024; 20% jump in property transactions, 17% rise in market volume projected
The emirate’s housing market is tipped to reach AED 300 billion – or close to $82 billion – by the end of this year.
Read the full article at Arabian Business
Dubai Real Estate Transactions as Reported on the 22nd of January 2024
The data presents the real estate transactions on the 22nd of January, with a total transaction value of AED 2,115,805,336. The market is segmented into 'Off-Plan' and 'Ready' properties across different types: flats, villas, and hotel apartments & rooms.
Transactions Overview
Total Transactions: The overall real estate transactions for the 22nd of January amounted to AED 2.12 billion.
Off-Plan Market Analysis
Flats: Dominating the off-plan segment, flats reached a transaction value of AED 1.23 billion, accounting for 87.75% of the off-plan market.
Villas: Villa transactions stood at AED 138.2 million, making up approximately 9.85% of the off-plan segment.
Hotel Apartments & Rooms: The smallest share was in hotel apartments & rooms, totaling AED 29.4 million, which is about 2.1% of the off-plan market.
Off-Plan Total: The combined value of off-plan transactions concluded at AED 1.40 billion, representing 66.3% of the total real estate transactions.
Ready Market Analysis
Flats: Sales of ready flats totaled AED 468.1 million, contributing 65.63% to the ready property segment.
Villas: Ready villa transactions accounted for AED 163.4 million, or 22.91% of the ready market.
Hotel Apartments & Rooms: This category saw transactions worth AED 15.6 million, holding a share of 2.18% in the ready segment.
Ready Total: The total for ready property transactions was AED 713.3 million, constituting 33.7% of the total market transactions.
The data indicates a strong preference for off-plan properties, particularly flats, which could suggest investor confidence in the future market and the potential for capital gains. Villas, although a smaller fraction of the off-plan transactions, show significant investment, indicating a steady demand for more spacious living accommodations.
In contrast, the ready property market shows a more balanced distribution between flats and villas, suggesting an immediate demand for residential living spaces. However, the relatively low investment in hotel apartments & rooms could reflect a cautious approach from investors possibly due to market saturation or a shift in investment strategies.
Data Source: Dubai Land Department