Dubai Real Estate Market Review 23-Feb-2024
In a snapshot of the Dubai real estate market on 22nd February 2024, the total transactions amounted to AED 1,993,736,522, highlighting a robust investment climate.
Dubai property frenzy sees buyers queue for million-dollar homes
Hundreds of buyers queued overnight outside a Nakheel office in Dubai for luxury waterfront homes at the Bay Villas development, showcasing the city's property market boom. All homes in the first two phases sold out quickly, with prices ranging from $1.2 to over $4 million. This demand reflects Dubai's property market recovery, with prices nearing record highs despite high mortgage rates. Nakheel, known for its artificial palm-shaped islands, has seen a surge in demand after a challenging period in 2009. The latest project attracted so many people that police had to maintain order.
Read the full article on The Business Times
Emaar Properties announces MASSIVE expansion of The Oasis project
The expansion has increased the development’s lush landscapes by 108%, elevating the total development value from AED34 billion to AED73 billion.
Read the full article on Arabian Business
KSA Real Estate report by Deloitte reveals key market trends and growth projections in the Kingdom
Deloitte's 2023 Saudi Arabia Real Estate Report indicates strong property market growth, driven by positive economic conditions with GDP expected to reach $3 trillion by 2030. The market is adapting to demand for remote work-friendly residential spaces, wellness features, and flexible office designs for hybrid work. Despite a decrease in residential transaction volumes, prices for villas and apartments rose. Tourism recovery is boosting the hospitality sector, with significant visitor increases contributing to GDP growth. Office and industrial sectors are expanding, with new developments and Special Economic Zones (SEZs) attracting investment and fostering sustainable business growth.
Read the full article on Zawya
Residential transaction value falls 15% to $21.1bn in key markets but prices and office rents climb, hospitality sector thriving
Saudi Arabia saw fewer residential real estate transactions last year as prices increased in Riyadh and Jeddah.
Read the full article on Arabian Business
Dubai Real Estate Transactions as Reported on the 22nd of February 2024
In a snapshot of the Dubai real estate market on 22nd February 2024, the total transactions amounted to AED 1,993,736,522, highlighting a robust investment climate. The market dynamics showcase a significant skew towards off-plan properties, which contributed AED 1,249,675,837 to the total transactions. This figure represents approximately 62.7% of the overall activity, indicating a strong investor confidence in the future of Dubai's real estate landscape and a healthy appetite for speculative investment.
Off-plan transactions were dominated by flats, which saw an inflow of AED 1,156,575,475. This substantial figure underscores the high demand for apartment living in the emirate, likely driven by urbanization, the influx of expatriates, and investors' preference for assets with a perceived potential for value appreciation. Villas, with transactions totaling AED 79,144,776, and hotel apartments and rooms, at AED 8,322,946, though significantly lower than flats, still indicate a diversified interest in different property types.
On the other hand, ready properties accounted for AED 744,060,685 of the total transactions, about 37.3%, suggesting that a considerable segment of the market is focused on immediate use and occupancy. Within this category, flats again led with transactions worth AED 504,620,461, followed by villas at AED 136,344,693 and hotel apartments and rooms at AED 58,573,086. The healthy volume of transactions in ready properties highlights a sustained demand for completed units, possibly for end-use or immediate rental income, reflecting the city's status as a mature real estate market.
The distribution of investments between off-plan and ready properties provides insights into the market's direction and investor sentiment. While the preference for off-plan purchases indicates optimism about the market's future growth, the substantial investments in ready properties demonstrate a stable demand underpinned by immediate utility and return on investment.
This analysis reflects Dubai's ongoing appeal as a leading destination for real estate investment, buoyed by its strategic location, investor-friendly policies, and a reputation for luxury and innovation in property development.
Data Source: Dubai Land Department