Dubai Real Estate Market Review 24-Jan-2024
Below are the latest real estate news and transactions.
Deyaar profit surges 206% in red-hot Dubai real estate market
Net profit reaches $120 million, up from $39.26 million for the same period in 2022; Revenue grows 56% to $341.5 million.
Read the full article at Arabian Business
Dubai developers entice new buyers with favourable payment terms
In Dubai's booming property market, developers are offering various incentives to attract buyers amidst intense competition. The market reached a ten-year peak in 2023, with record sales. Developers are adopting flexible payment plans, such as the popular "one per cent offer", where buyers make a 20% down-payment and then pay 1% of the total price monthly. This plan, pioneered by Danube Properties, eases the financial burden on buyers, especially those with limited income, but requires developers to have significant upfront funding. Additionally, some developers, like Dugasta Properties, are providing unique enticements like a 100% buy-back option after five years. The surge in end-user buyers, driven by high rents, has also influenced this trend. Despite higher interest rates, there has been an increase in owner-occupiers buying properties. The market's maturation is evident in the shift towards domestic demand and increased affordability through lowered mortgage rates and innovative payment schemes.
Read the full article at The National
Azizi starts work on $1.5bn Dubai tower that could be the world's second tallest
Azizi Developments is constructing Burj Azizi, which could become the world's second-tallest tower if approved. The project's height is pending approval but is expected to surpass 679 meters, making it taller than Malaysia's Merdeka 118. This $1.5 billion development will include luxury residences, a mall, a seven-star hotel, and an observation deck.
Mirwais Azizi, the company's founder, views the tower as a legacy project in gratitude to Dubai. Set for completion in four years, the development is part of Azizi's broader expansion, including 50 luxury hotels and the Dh30 billion Azizi Venice mixed-use development. UAE property prices, especially in Dubai, are projected to continue rising, with a potential market shift anticipated in the luxury sector by the upcoming summer.
Read the full article on The National
Dubai logs over Dhs3.4 billion in realty transactions
Dubai's real estate market saw significant activity with over Dhs3.4 billion in transactions on Tuesday, including 510 sales transactions worth Dhs1.36 billion, 210 mortgages totaling Dhs1.95 billion, and 30 gift deals amounting to Dhs165.56 million. Similarly, on Monday, there were 715 sales transactions worth Dhs2.28 billion, 201 mortgages of Dhs993.9 million, and 30 gift deals totaling Dhs76.3 million. In 2023, the market experienced a record-breaking year with sales exceeding Dhs400 billion for the first time, indicating a strong and continuous market momentum. The real estate transactions increased by over 32% annually to about 129,000 sales transactions, the highest ever.
Read the full article at Gulf Today
42,000 residential units will be delivered across Dubai, Abu Dhabi in 2024 - JLL
The UAE’s property market will see the delivery of 42,000 residential units across Dubai and Abu Dhabi in 2024.
Approximately 34,000 units are scheduled to be delivered in Dubai, while 8,000 units are anticipated in Abu Dhabi this year, according to a report from global real estate services company JLL.
Read the full article at Zawya
Economic resilience and robust demand propel the UAE’s real estate performance in 2023: JLL
92,000 sq.m. of office space delivered in Dubai in 2023; an additional 156,000 sq. m. expected to enter the UAE in 2024 as businesses demand quality office spaces.
Read the full article at Zawya
UAE’s Eagle Hills, PIF to launch $1.6bln real estate project in Saudi Arabia: Report
Abu Dhabi-based Eagle Hills plans to launch a resort project in Saudi Arabia in partnership with Public Investment Fund (PIF) at an investment of 6 billion Saudi riyals ($1.56 billion), Arabic language daily Asharq Business reported.
Read the full article at Zawya
Dubai Real Estate Transactions as Reported on the 23rd of January 2024
On January 23, 2024, Dubai's real estate market experienced a robust amount of transactions totaling AED 1,528,681,996. The market activity was segmented into off-plan and ready properties, showcasing significant consumer interest and capital flow within the sector.
Off-Plan Transactions:
The off-plan market saw the highest volume of transactions, with a total of AED 915,609,722.
Flats led the category with AED 788,999,191, suggesting a strong investor confidence in the future residential market.
Villas accounted for AED 55,602,224, indicating a more modest but still noteworthy interest in luxury and family-oriented properties.
Hotel Apartments and Rooms totaled AED 64,817,227, reflecting a sustained investment in Dubai's hospitality sector, likely driven by the city's thriving tourism industry.
Ready Property Transactions:
The ready property segment reported a total of AED 613,072,274, revealing a solid demand for immediate occupancy homes and commercial spaces.
Flats were the most prominent in this section as well, with AED 406,912,326 in sales, underscoring the continuous demand for residential spaces that are move-in ready.
Villas, with transactions worth AED 96,843,979, showed a stable market for completed high-end, spacious homes.
Hotel Apartments and Rooms had transactions of AED 26,789,716, which, while lower than off-plan, still indicates active transactions in completed hospitality assets.
The data indicates a vibrant real estate market in Dubai on the 23rd of January 2024, with a total of AED 1.53 billion in transactions. The off-plan property market attracted almost 60% of the day's total investment, highlighting investor optimism about the city's growth prospects. The ready property segment, accounting for approximately 40% of the transactions, shows a strong market for immediate-use properties.
Data Source: Dubai Land Department