Dubai Real Estate Market Review 31-Jan-2024
Below are the latest real estate news and transactions.
World's most indebted real estate developer ordered to liquidate
A Hong Kong court ordered the liquidation of China Evergrande, the world's most indebted developer, due to its failure to restructure $300 billion in debt. The company, facing insolvency, owes $25.4 billion to foreign creditors. Evergrande's chairman was detained amid the crisis. The impact on China's financial system and Evergrande's operations, including housing deliveries, is unclear. Evergrande's shares plunged before trading suspension, affecting investor confidence. The decision follows a lack of viable restructuring proposals from Evergrande, despite a previous court reprieve. The company expressed regret and aims to continue operations, highlighting the broader challenges in China's debt-heavy real estate sector.
Read the full article on Khaleej Times
Off-plan property supply and UAE Golden Visa rule change to spark investment boom
Dubai real estate developer ZāZEN Properties said UAE Golden visa rule changes will see further property investment this year.
Read the full article on Arabian Business
New tenants pay higher rents than existing occupants as rental gap widens
Dubai's rental market is evolving into a two-tiered system, with a growing gap between renewal rents and new lease rents. Existing tenants face regulated increases, while new tenants pay higher market rents. This divergence is attributed to the Real Estate Regulatory Authority's rental calculator. In central areas like Downtown and Business Bay, rents for new leases are expected to rise in 2024 due to high occupancy. However, the increase might be moderate in suburban districts with more new properties. Some tenants are buying properties to avoid frequent renewals or relocations. Gross apartment yields in Dubai are at a 7-year high, while villa yields have slightly decreased. Rents are expected to rise by 8-12% on average in 2024, with central locations seeing higher increases. The city saw over 39,400 new housing units in 2023, and around 32,000 units, mostly apartments, are expected in 2024.
Read the full article on Khaleej Times
Why Are More Indians Investing In Dubai? An In-Depth Look Into Dubai Real Estate Trends
Dubai's real estate market is attracting global and Indian investors due to its robust growth and investment opportunities. The market saw a 55.5% increase in property transaction value, reaching AED 409.8 billion, and a 37.3% rise in property transfers in the last year. Factors driving this demand include Dubai's population growth, economic diversification, and investor-friendly government policies, such as long-term visas and tax exemptions. Indian investors, the second-largest foreign investor group in Dubai in 2023, are attracted by easy connectivity, tax benefits, profitable returns, and lifestyle compatibility. They prefer apartments, especially studios and one to two-bedroom flats in high-end communities like Dubai Marina and Downtown Dubai. Dubai's evolving market, supported by a growing population and diverse economy, promises lucrative returns for both local and international investors.
Read the full article on ZEENEWS
Top property management companies for renting homes in Dubai: who are they and why are they needed?
Dubai's real estate market is attracting global investors, leading to a surge in apartment purchases and a growing demand for property management services. These services are essential for legally leasing properties in Dubai and involve responsibilities like market analysis, tenant management, and property maintenance. Colife management company, for instance, has seen a fourfold increase in clients over the last year. Property management companies charge around 15-20% commission and offer various services, including tenant placement and apartment preparation. Different companies provide different services and commission rates, such as Better Homes with a choice of tariffs, Etagi focusing on short-term and long-term rentals, Haus & Haus specializing in large apartments in central areas, Suite.stay for short-term rentals with a dedicated app, Mira Homes for short-term leasing, Frank Porter for comprehensive short-term services, and UpperKey with rental guarantees and Airbnb services. The choice of a management company depends on the owner's needs, with trust and reputation being key factors.
Read the full article on Zawya
Dubai’s off-plan boom propels UAE realty sales to Dh455.7b
Dubai's off-plan real estate sector has been a key driver of growth in the UAE market, with sales reaching Dh455.7 billion in 2023. This sector is expected to continue boosting the market in 2024, driven by demand outpacing supply and Dubai's rapidly growing population. In 2023, off-plan sales transactions surged by 59.4%, with Dubai's tourism boom contributing to this increase. The UAE's decision to remove the Dh1 million down payment requirement for the golden visa program is expected to attract more investors, enhancing the real estate market's value. Analysts note that rising mortgage rates make off-plan properties more attractive compared to ready properties, due to more favorable investment economics and flexible payment plans amidst high lending rates. Dubai's population growth further fuels demand in this sector.
Read the full article on Khaleej Times
Indian real estate developers Skyline Builders unveil first Dubai project
Indian real estate developer Skyline Builders has entered the Dubai market with their first residential complex, ‘Avant Garde Residences’, located in Jumeirah Village Circle. Priced starting at Dh625,000 for a studio, the project is expected to be completed by Q4 2026. The 24-floor complex will feature 172 residential apartments, including studios, 1 and 2-bedroom units, along with three retail shops. Skyline also opened its Dubai headquarters in Downtown Dubai. The Avant Garde Residences will offer amenities like a health club, infinity pool, game room, and children’s play area. The company has a strong customer base among Non-Resident Indians (NRIs) in the UAE, with many expressing interest and confirmed bookings for the new project. Skyline Builders, with a 35-year history, has completed 158 projects across 9 cities.
Read the full article on Gulf News
Swank to tap Dubai property market
Swank Development, a Portuguese team specializing in construction, design, and furniture, has launched its first project in Dubai's Mohammed Bin Rashid City – Meydan, with an investment portfolio of over Dhs300 million for the year. Their debut in Dubai aims to blend the rich traditions, hospitality, and joyful lifestyle of Portuguese culture into their projects, offering a unique and sophisticated living experience. General Manager Prasenjit Ghosh highlighted Dubai’s attractive features for global investors, such as its thriving economy and advanced infrastructure. Swank Development is committed to creating urban spaces that embody personalized luxury and efficiency, meeting the rising demand for high-quality residential units. Moustafa Elsaid, Head of Sales, emphasized the company's focus on luxury and excellence, integrating elements of Portuguese heritage, design, and craftsmanship to create enjoyable and inspiring homes. Their approach is to craft distinctive living spaces that cater to the discerning needs of their customers.
Read the full article on Gulf Today
Dubai Real Estate Transactions as Reported on the 30th of January 2024
Dubai's real estate market has seen transactions reaching a staggering AED 1,498,663,292 on January 30, 2024. The city's market has shown a clear preference for off-plan purchases, with such transactions making up a dominant 68% of the total.
Off-Plan Segment: AED 1,021,013,882
Flats: AED 910,682,568
Villas: AED 93,331,187
Hotel Apartments & Rooms: AED 11,490,489
The data reflects a strong investor confidence in the city's burgeoning developments, as buyers flock to secure a piece of Dubai's future residential landscape.
Ready Property Segment: AED 477,649,409
Flats: AED 337,553,478
Villas: AED 84,507,386
Hotel Apartments & Rooms: AED 24,083,475
The ready property segment reflects more conservative numbers, with flats being the most sought-after. This could signify a consistent demand for properties available for immediate occupancy. Villas and hotel apartments & rooms, while less significant in value compared to flats, indicate a stable market segment that caters to immediate use or rental income generation.
The preference for off-plan over ready properties might be influenced by attractive financing options, developer incentives, and speculation for future appreciation in property values. This trend highlights the market's optimism regarding Dubai's economic growth and real estate potential.
This trend is a testament to Dubai's unabated appeal as a global investment destination, propelled by its strategic location, robust infrastructure, and unparalleled lifestyle offerings. As the city continues to cement its position as a leading business and tourism hub, the real estate sector looks poised for a thriving 2024 and beyond, promising a wealth of opportunities for savvy investors.
In conclusion, Dubai's real estate market is not just surviving — it's thriving, with a strong inclination towards off-plan investments marking investor confidence and optimism for the city's continued growth.
Data Source: Dubai Land Department