Dubai Real Estate Market Review 27-Feb-2024
On 27th February 2024, the Dubai real estate market witnessed robust transactions totaling AED 1,784,803,967.
DDX Global set to unlock enormous potential of real estate tokenization with Desert Pearl
DDX Global is revolutionizing Dubai and the UAE's property market by tokenizing real-world assets, aiming to tap into the expected US$16 trillion market by 2030. Launching its flagship project, Desert Pearl, DDX enables investors to benefit from blockchain technology in real estate. This project promises state-of-the-art amenities and is designed to appeal to the growing number of high net worth individuals and fintech enterprises in Dubai. Desert Pearl will feature luxury hotels, apartments, and commercial spaces, all tokenizable to enhance investment liquidity and international interest. DDX's efforts highlight its commitment to integrating digital transformation and sustainability in the luxury real estate sector.
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Dubai now a ‘seller’s market’ after surge in property transactions
Dubai's property market has experienced a three-year price rally, leading to concerns about affordability in the UAE's most populous emirate. This seller's market, fueled by high demand, rising rental prices, and an increasing population, has seen property prices surpass their 2014 peak. The market has been particularly attractive to Russian buyers and has benefited from a post-pandemic surge in demand. Real estate firm Betterhomes reports sellers are now capitalizing on this boom, with property values increasing significantly since 2020. However, a cooling-off period is anticipated in 2024 due to high interest rates and an influx of new housing units.
Read the full article on The Circuit
Luxury property market to boom as wealthy individuals flock to nation
A projected 24.6 percent increase in high net worth individuals by 2025 will propel the ultra-luxury segment to new height.
Read the full article on Arabian Business
The strong activity and performance levels in the UAE’s real estate market expected to continue into 2024, says CBRE
The UAE real estate market sustained strong activity into the last quarter of 2023 across various sectors. Office rental performance in Abu Dhabi and Dubai saw significant increases due to heightened demand and limited stock. The residential market experienced price growth, with Dubai's prices up by 20.1% and Abu Dhabi's apartment prices increasing slightly. The hospitality sector thrived with notable rises in hotel visitors and occupancy rates. Retail sector leasing activity varied, with overall rental rates increasing, driven by demand in the Food and Beverage sector. The industrial and logistics market remained landlord-favored due to high demand and limited quality stock, pushing up rental rates. CBRE predicts continued resilience in the UAE's real estate market for 2024, albeit with moderated growth in some sectors amidst global economic challenges.
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UAE’s realty sets sights on a stellar 2024, analysts say
The UAE's real estate market experienced significant growth in 2023, with analysts predicting continued robust performance into 2024 despite potential economic challenges. In Dubai, residential prices surged by 20.1%, with transaction activity reaching an all-time high. Abu Dhabi saw a more moderate increase in apartment prices and a slight rise in villa rents. While rental activity in Abu Dhabi slowed down, Dubai's rental market growth moderated. The hospitality sector also saw impressive gains, with Abu Dhabi and Dubai witnessing substantial increases in visitor numbers. However, the retail sector in both emirates experienced a slowdown in leasing activity. Concerns about oversupply and global economic uncertainties may temper future growth, but the non-oil sector's expansion supports a positive outlook for the real estate market.
Read the full article on Khaleej Times
Deyaar launches $191m project in Dubai and plans first development in Abu Dhabi
Deyaar Development is launching a Dh700 million project in Dubai, named Eleve, with plans to start its first project in Abu Dhabi in Q2 due to rising property demand in the UAE. The Dubai project, located in Jebel Ali, includes studios to three-bedroom flats, financed through debt and sales revenue, aiming for completion in three years. This follows the sold-out Rosalia Residences in Al Furjan. UAE's property market growth is supported by government initiatives, economic diversification, and a record in non-oil foreign trade. Deyaar, experiencing significant profit increases, anticipates a 30% revenue rise this year, amid a booming market and strong demand, especially from Indian and Pakistani investors.
Read the full article on The National
Dubai residential prices leap 20%, rents up 19%; Abu Dhabi hospitality thriving; expert forecast for 2024
UAE real estate experts say strong activity will continue this year, but at slower rates than in 2023.
Read the full article on Arabian Business
Dubai Real Estate Transactions as Reported on the 26th of February 2024
On 26th February 2024, the Dubai real estate market witnessed robust transactions totaling AED 1,784,803,967. The market was dominated by off-plan transactions, which contributed significantly to the total volume, while ready properties maintained a steady performance.
Off-Plan Property Transactions:
Flats were the standout category within off-plan transactions, contributing AED 976,283,215. This represents a significant 86.7% of the total off-plan transactions.
Villas followed, with a contribution of AED 140,753,981, accounting for approximately 12.5% of the off-plan segment.
Hotel Apartments and Rooms had the least contribution in this category, with transactions worth AED 5,714,000, making up a modest 0.5% of the off-plan market.
Off-plan transactions totaled AED 1,125,931,730, capturing a dominant 63.1% of the overall market transactions for the day.
Ready Property Transactions:
Flats led the ready property market with AED 476,060,751 in sales, translating to 72.3% of the total ready transactions.
Villas also showed a strong performance in the ready market, totaling AED 130,043,655, which is roughly 19.7% of the segment.
Hotel Apartments and Rooms saw transactions amounting to AED 20,100,202, contributing 3% to the ready property transactions.
Ready property transactions amounted to AED 658,872,237, accounting for 36.9% of the total real estate market transactions on the reported date.
Market Analysis:
The data indicates a robust inclination towards off-plan property investments, signaling investor confidence in the future of Dubai's real estate market. The high volume of flat transactions within both categories underlines a continuing trend for residential properties, which remain the cornerstone of real estate activity in the city.
The modest contribution of hotel apartments and rooms, particularly in the off-plan sector, may reflect a more cautious approach from investors, possibly due to market saturation or a strategic wait for the tourism sector's post-pandemic recovery trajectory.
Conclusion:
Dubai's real estate market remains vibrant, with off-plan properties attracting the majority of investor interest. Flats, both off-plan and ready, are the most transacted property type, demonstrating the demand for residential spaces in Dubai's growing economy. The transactions on 26th February 2024 affirm the market's stability and the enduring appeal of Dubai as a hub for real estate investment.
Data Source: Dubai Land Department