Dubai Real Estate Market Review 30-Jan-2024

Below are the latest real estate news and transactions.

January 30, 2024

As cranes speckle the Dubai skyline and ultra-luxury homes change hands at record prices, signs that the city-state's property boom is fizzling out are coming into view.

Developers, investors and brokers are privately asking how quickly one of last year's hottest real estate markets could turn and whether a painful correction akin to the slump that rocked the emirate in 2008 can be ruled out.

Read the full article on Reuters

In Dubai, real estate transactions reached AED 14.2 billion during the week ending January 26, 2024, with a total of 4,123 deals. This included the sale of 312 plots for AED 2.95 billion and 2,696 apartments and villas for AED 5.84 billion. The top three land transactions were in Al Barshaa South Second (AED 210.1 million), Saih Shuaib 2 (AED 103.74 million), and Saih Aldahal (AED 100 million). Madinat Hind 4 had the highest number of sales. The priciest apartment and villa sales were in Nad Al Shiba First (AED 177.13 million) and Palm Jumeirah. Mortgaged properties amounted to AED 4.6 billion, with the highest in Trade Center First at AED 962.2 million. Additionally, 195 properties worth AED 850 million were granted among first-degree relatives.

Read the full article on Zawya

Branded residences, offering luxurious amenities, are attracting high net-worth individuals and can command up to double the rent compared to non-branded properties. The demand for these high-quality living spaces is driving up prices, with industry executives noting that luxury homes have greater potential for price increases. Dubai's rental market is expected to remain strong, especially as limited new prime properties are anticipated in prestigious locations. Knight Frank data shows Dubai leading globally in $10 million-plus home sales. Post-Covid, high-net-worth individuals from Europe are increasingly relocating to Dubai, drawn by property quality, value, and the city's tax benefits. This trend has led to record-breaking sale prices for super-luxury residences. Political unrest in the Middle East is further driving buyers towards Dubai. The city's real estate market is transitioning from transient to mature, with a focus on the beach lifestyle and a move towards properties ready for immediate occupancy. The supply of prime properties is limited, keeping demand high and continuing market growth.

Read the full article on Khaleej Times

The 16th IREX 2024 event, focusing on international real estate investments and citizenship/residency programs, will take place on February 2-3, 2024, at Taj Dubai. It aims to connect Dubai investors with global luxury real estate and citizenship options. Participants include companies from various countries, with over 500 visitors expected. The event will feature discussions on global investment opportunities and the growing market for investment immigration. Key highlights include showcasing London properties and Greek Golden Visa opportunities. The event, organized by GMN Events Pvt. Ltd, caters to the increasing demand for investment-driven migration, offering benefits like wealth diversification and global lifestyle opportunities.

Read the full article on Zawya

In 2023, Dubai's real estate market achieved historic highs in transaction volume and value, reinforcing its global stature. Key highlights include record-breaking sales transactions surpassing 2014 peaks, a shift from tenants to buyers due to rising rents and the search for stability, a significant population increase surpassing 100,000, and a supply-demand imbalance leading to a 24% rise in average rental prices. The luxury real estate sector thrived, attracting global millionaires, with the UAE ranking second in wealth migration. Despite a slowdown expected in 2024, continued growth is anticipated, showcasing Dubai's evolving and maturing real estate market.

Read the full article on Zawya

Covering a vast area of 1.6 million square feet, the Samana Barari Twin Towers will consist of two towers with 54 floors in Majan Dubai.

Read the full article on Arabian Business

Dubai Real Estate Transactions as Reported on the 30th of January 2024

On January 30, 2024, the Dubai real estate market saw a total of AED 2,012,115,159 transactions, signaling a robust and dynamic market. Data indicates robust investment in off-plan properties with a total transaction value of AED 1,317,426,311, notably outpacing ready property transactions, which totaled AED 694,688,849.

Off-Plan Property Transactions:

  • Flats dominated the off-plan segment, with transactions amounting to AED 1,143,501,464, reflecting investor confidence in future residential developments.

  • Villa transactions followed with AED 141,091,601, suggesting a healthy demand for luxurious private residences.

  • Hotel Apartments and Rooms observed a transaction value of AED 22,162,359, indicating a niche but present investment interest in hospitality real estate assets.

Ready Property Transactions:

  • Ready flats saw transactions worth AED 461,468,629, indicating a strong market for immediate occupancy residential properties.

  • Villas maintained their appeal in the ready segment with transactions of AED 115,590,474, showcasing sustained interest in upscale housing.

  • Hotel Apartments and Rooms in the ready segment experienced a total transaction value of AED 55,471,713, surpassing off-plan transactions in the same category, highlighting a preference for immediate operational assets in the hospitality sector.

The higher transaction volume in off-plan properties, particularly flats, underscores a forward-looking investor sentiment, betting on the continued growth and development of Dubai's urban landscape. The relatively lower total transaction value of ready properties indicates a possible market maturity where immediate occupancy options are concerned, or it could suggest a market preference for investment in properties with future growth potential.

The villa segment, while smaller in comparison to flats, remains significant in both off-plan and ready markets, highlighting sustained interest in private, family-oriented residences.

Hotel Apartments and Rooms show the least amount of transactions in both categories. However, the greater value in ready hotel properties compared to off-plan suggests investors may prefer immediate returns on investments in the hospitality industry.

Data Source: Dubai Land Department

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