UAE’s property market shows no sign of cooling off, says CBRE

In 2023, the UAE's property market broke a decade-long record for home sales, with Dubai's residential prices rising by 20.1%. CBRE reported the delivery of 39,190 residential units in 2023 and anticipates 68,880 units in 2024. Abu Dhabi saw a modest increase in apartment prices and rents, despite a drop in rental registrations. The hospitality sector flourished with significant visitor increases, boosting hotel occupancy and revenue. The industrial and logistics sector also showed strength, with a rise in rental contracts in Abu Dhabi, while Dubai experienced a slight decline. Overall, the UAE's real estate market is poised for continued growth in 2024, driven by its status as a global tourism and business hub and relaxed visa regulations.

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Dubai real estate leads in sustainability drive

Dubai's real estate sector is advancing sustainability, aiming to align with the Dubai 2040 Urban Masterplan and UAE Net Zero 2050 goals. With over 400 projects having LEED certification, Dubai ranks third globally in sustainability efforts. The focus on energy-efficient buildings and sustainable construction is key to mitigating environmental impacts. The UAE's extended Year of Sustainability into 2024 emphasizes using natural light, better insulation, and renewable energy in residential projects. Green-certified buildings in Dubai command a premium, reflecting a shift towards long-term value and environmental considerations. The UAE's real estate market, expected to reach $710 billion by 2024, is prioritizing sustainability to contribute to the nation's GDP growth and carbon reduction targets, with a significant portion of investors and residents supporting sustainable developments for a more sustainable future.

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As off-plan property sales are booming, which are the best areas to invest in?

Better Homes identifies promising markets for homeowners and investors in Dubai.

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Dubai South and Aldar partner to develop grade a assets in Dubai south logistics district

Dubai South and Aldar Properties have partnered to develop Grade A logistics facilities in Dubai South's Logistics District, focusing on build-to-lease and build-to-suit assets. The first project, near Al Maktoum International Airport, will feature a facility with almost 24,000 sqm of gross floor area, targeting completion by the end of 2024. This venture aligns with Aldar's strategy to diversify into high-growth real estate segments, contributing to their AED 1 billion investment in the logistics sector. The partnership aims to enhance Dubai South's logistics infrastructure, supporting the region's economic development and meeting the needs of 3PL, e-commerce, and retail sectors.

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Dubai’s skyrocketing rents: Hardest hit neighbourhoods revealed

In 2023, Dubai's residential real estate sector saw significant rental and home price increases, with Damac Hills leading at a 66.67% rise in annual rentals. Dubizzle's report highlighted severe hikes in Dubailand, JVC, and Al Barsha as well. Villas in DAMAC Hills 2 were the most affordable, with average rents at Dhs96,000. Luxury apartment rents surged in Business Bay by 21.05%, with Dubai Marina and Downtown Dubai also experiencing high rental costs. Conversely, Abu Dhabi showed a mixed rental market, with decreases in some areas but increases in luxury properties on Al Reem Island and villas in Mohammed Bin Zayed City.

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UAE exits FATF grey list: Dubai real estate to ‘benefit most’, say experts

The UAE’s removal from the FATF’s financial crime watchlist is expected to spur economic growth, particularly in the Dubai real estate sector, attracting increased foreign direct investment and institutional funds, according to experts.

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Palm Jumeirah's upgraded Signature Villa sold for Dh128 million

B1 Properties has sold a luxurious villa on Palm Jumeirah for a record Dh128 million, setting a new standard in Dubai's high-end real estate market. The property, with a built-up area of 9,382sqft and a plot size of 14,691sqft, offers views of the Burj Al Arab and the marina skyline. This sale reflects the growing demand for ultra-luxurious real estate in Dubai. The villa, a collaboration between Alpago Properties, LW Design Group, and developed by Arth Properties, features Italian furniture, five en-suite bedrooms, an office, a private gym, a cinema, and an infinity pool, showcasing B1 Properties' commitment to luxury real estate.

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Dubai Real Estate Transactions as Reported on the 27th of February 2024

The Dubai real estate market experienced a high volume of transactions on the 27th of February 2024, totaling AED 1,339,730,253. The market dynamics showed a strong preference for off-plan property investments over ready properties.

Off-Plan Transactions: 

Off-plan properties represented a significant portion of the market activity, with a total transaction value of AED 792,454,911. The majority of these transactions were attributed to flats, which accounted for AED 701,370,600 of the total off-plan sales. Villas followed with a transaction value of AED 76,701,492. Hotel apartments and rooms, while the smallest contributor in this category, still added AED 3,290,046 to the total off-plan transactions. This indicates a robust investor confidence in purchasing properties prior to their completion, reflecting optimism in the potential growth of the real estate sector.

Ready Properties: 

Transactions for ready properties contributed AED 547,275,341 to the total sales. Within this category, flats dominated the market, with a transaction value of AED 429,800,916. Villa sales also showed a strong performance with a value of AED 79,184,965, demonstrating continued demand for completed residential units. Hotel apartments and rooms had the least contribution, with a transaction value of AED 12,697,637, which suggests a more conservative interest compared to residential units.

The analysis of the transactions reveals that off-plan properties made up approximately 59% of the total real estate transactions for the day, while ready properties accounted for about 41%. This distribution underscores a more aggressive investment in the off-plan sector, which may be driven by favorable pricing, anticipated market growth, or attractive developer incentives.

Conclusion: 

The real estate transactions in Dubai on 27 February 2024 emphasize a strong investor interest in off-plan properties, particularly flats, indicating a buoyant market with a forward-looking investment approach. Ready properties maintain a significant share of the market, with flats once again being the primary choice for buyers seeking immediate occupancy or investment returns. The data reflect a healthy and dynamic real estate environment in Dubai, with diverse offerings catering to a broad range of investment strategies and lifestyle preferences.

Data Source: Dubai Land Department