Dubai Real Estate Market Review 29-Dec-2023
Below are the latest real estate news and transactions.
UAE leads Gulf real estate deals in 2023
An economic report by Kamco Invest revealed that the UAE leads the Gulf Cooperation Council (GCC) in real estate deals for the first ten months of 2023. The total value of GCC real estate transactions reached $171.6 billion, a 21.1% increase from 2022. Dubai contributed 52.1% of this, with a 57% annual surge in real estate deal values, driven by high demand for luxury properties. Abu Dhabi also saw a 56% jump in deal values. This robust performance elevated the UAE's market, surpassing 2022's $165.8 billion estimate. The real estate stock indices in UAE and Saudi Arabia showed strong gains. According to the Gulf real estate total yield index by Refinitiv, the sector grew by 19.2%, outperforming the Morgan Stanley Gulf Index. This growth was led by real estate development indices in Dubai (32.9%), Abu Dhabi (29%), and Saudi Arabia (21.4%).
Read the full article at Gulf News
Al Maryah Community Bank Signs MoU with Real Estate Regulatory Agency
Al Maryah Community Bank (Mbank), a prominent digital bank in the UAE, has partnered with the Real Estate Regulatory Agency (RERA) to offer Escrow account services, enhancing the safety of investor deposits in real estate. This initiative supports the UAE government's efforts to secure investments and regulate the real estate sector. The service simplifies the process for developers to set up Escrow accounts, ensuring efficient transaction management and boosting investor confidence. It aims to provide security for both investors in under-construction projects and developers by minimizing risks. Mohammed Wassim Khayata, CEO of Mbank, emphasizes this partnership as a step towards aligning with the UAE's real estate sector advancements and meeting the needs of developers and investors through innovative banking solutions.
Read the full article at Gulf News
The Luxe Developers research highlights the increasing demand for property in RAK
Ras Al Khaimah’s (RAK) real estate market is experiencing substantial growth, attracting significant interest from property developers, as noted in Colliers' research for The Luxe Developers. Key factors contributing to this growth include the Wynn integrated resort announcement and RAK Vision 2030, aiming to position RAK as a prime destination for various sectors, including real estate.
In 2022, RAK saw a 26% increase in real estate transactions, totaling 2,279 deals valued at AED2.1 billion. Resale transactions also rose by 59%, indicating a booming market. Proptech company Realiste predicts a price increase of up to 21% in areas like Al Marjan Island within the next 12 months.
Shubam Aggarwal of The Luxe Developers expresses optimism about the strong interest in their Oceano project, attributing it to the region's development and amenities. Major investments from companies like Nobu Hotel and Aldar highlight the market's popularity.
Tourism in RAK is also booming, with a 64.7% revenue increase in H1 2023, further supported by new hotel brands and upcoming daily Qatar Airways flights.
The Luxe Developers' Oceano project, valued at over AED1.5 billion and due for completion by Q3 2026, will feature 206 luxury units with extensive amenities. Siddharta Banerji notes the high interest in Oceano and plans for future unique developments, emphasizing quality and luxury in their projects.
Read the full article at Construction Business News
Dubai Real Estate Transactions as Reported on the 28th of December 2023
Real Estate Market Update: Ready Properties Outperform Off-Plan in Transactions as of 28-Dec-2023
On December 28, 2023, recent real estate transaction data revealed a substantial increase in the purchase of ready properties compared to off-plan properties. The statistics showed that the ready property sector reached a transaction value of AED 1,009,050,521.60.
Off-Plan Properties Maintain Market Presence
Off-plan property transactions have reached a total of AED 449,186,384.52. Within this segment, flats dominated with transactions worth AED 420,715,818.41, while villas followed with AED 26,443,346.11. The data indicated no recorded transactions for Hotel Apartments and Residences on this date. Other categories of off-plan properties saw transactions amounting to AED 2,027,220.00.
Ready Property Transactions Exhibit Strong Performance
The ready property market showcased a more significant transaction volume, with flats leading at AED 791,444,611.39. Villa transactions in the ready property sector were reported at AED 148,700,213.20, and Hotel Apartments and Residences transactions were at AED 14,541,214.90. Other types of ready properties accounted for AED 54,364,482.11 in transactions.
The data from December 28, 2023, indicates a clear consumer trend towards the purchase of ready properties over off-plan ones, with the total transaction value for ready properties more than doubling that of off-plan properties.
Data Source is Dubai Land Department