Dubai Real Estate Weekly Market Analysis 05-Feb-2024
On the week ending on the 2nd of Feb , the Dubai real estate market recorded AED 6,094,090,141 in total transactions down from AED7,141,036,133 in the previous week.
On the week ending on the 2nd of Feb, the Dubai real estate market recorded AED 6,094,090,141 in total transactions down 15% from the previous week. This robust activity underscores the market’s vibrancy and is segmented into two principal categories: off-plan and ready properties. Off-plan properties dominated the week's transactions, accounting for approximately 57% of the total value.
Off-Plan Transactions:
Total Transactions: AED 3,463,996,661
Flats: AED 2,936,152,111
Villas: AED 439,653,775
Hotel Apartments & Rooms: AED 56,974,563
Investors’ confidence in Dubai's future real estate landscape is evident, with flats representing a significant 85% of the off-plan transaction value, signaling a high demand for this property type. Villas followed with about 13%, while hotel apartments and rooms held a smaller share, contributing approximately 1.6% to the off-plan segment.
The off-plan segment had the following top areas with a total transaction value of AED 2,135,257,333:
Dubai Maritime City: AED 527,217,576, leading the off-plan sector with significant investments, reflecting the area's growing appeal.
Business Bay: AED 345,715,628, known for its commercial facilities, also attracts residential investors.
Jumeirah Village Circle: AED 328,326,798, remains a favorite for its residential community appeal.
Um Suqaim Third: AED 187,549,000, indicating a preference for more established neighborhoods.
Dubai Creek Harbour: AED 163,045,390, showing interest in newer developments.
Madinat Al Mataar: AED 136,427,603, suggesting a developing market presence.
Dubai Water Canal: AED 134,257,397, highlighting the desire for waterfront properties.
Hadaeq Sheikh MBR: AED 113,315,762, showing investment in up-and-coming areas.
Dubai Harbour: AED 105,081,225, indicating potential for growth in new developments.
Burj Khalifa: AED 94,320,954, still a prestigious address attracting a significant number of transactions.
Ready Property Transactions:
Total Transactions: AED 2,630,093,480.12
Flats: AED 1,761,089,844.19
Villas: AED 469,633,778.50
Hotel Apartments & Rooms: AED 222,718,686.87
The statistics reflect a robust demand for residential units that are ready for occupancy, which is likely motivated by end-users and investors seeking immediate accommodation or rental revenue. Flats constituted roughly 67% of the ready property segment's transactions, with villas at about 18%, and hotel apartments & rooms comprising nearly 8.5%.
In the ready property sector, with a total transaction value of AED 1,611,640,157, the top areas were:
Burj Khalifa: AED 306,380,029, topping the list, demonstrating its unwavering status as a prime location.
Palm Jumeirah: AED 257,406,573, preferred for its luxury lifestyle and status.
Business Bay: AED 236,412,714, a consistent performer in both off-plan and ready property segments.
Jumeirah Village Circle: AED 198,269,214, showing its balanced appeal for both immediate occupancy and future development.
Dubai Marina: AED 181,820,943, always in demand for its vibrant waterfront lifestyle.
Dubai Hills: AED 124,843,168, appealing for its green spaces and family-friendly environment.
Dubai Creek Harbour: AED 112,238,680, a new development that's quickly becoming popular for end-users.
Jumeirah Lakes Towers: AED 81,734,656, chosen for its mix of residential and commercial spaces.
Emirate Living: AED 57,534,179, showing a steady demand for established residential communities.
Marsa Al Arab: AED 55,000,000, indicating an interest in new luxury developments.
Analysis:
The heavy investment in off-plan properties suggests a forward-looking real estate market where investors are placing their bets on future gains. The preference for acquiring properties during the pre-completion phase is likely influenced by favorable payment plans or the prospect of capital gains as property values increase over time.
In contrast, the significant transactions in ready properties reflect a segment of the market that caters to those seeking immediate occupancy or utilization. The inclination towards flats, in particular, may stem from Dubai's reputation as a location that offers a superior lifestyle. The city's strategic initiatives to attract global investors with a tax-efficient framework and top-tier amenities further enhance its attractiveness.
The disparity in transaction volumes between off-plan and ready properties could imply a greater value placed on brand-new constructions that meet contemporary consumer preferences and trends. Alternatively, this gap may reveal a limited inventory of properties that are ready for immediate occupation, nudging purchasers towards off-plan options.
Conclusion:
The real estate activities observed from last week’s transactions underscore the dynamism and investor confidence pervading Dubai's property market, with a pronounced preference for off-plan investments. The interest in ready properties, while not as high, remains significant, reflecting the sustained appeal of properties available for immediate use. This trend is in line with Dubai's ambitious developmental objectives and its stature as a leading global hub for business and expatriates. As Dubai progresses on its path of growth, its real estate sector is expected to parallel this ascent, presenting plentiful prospects for development and investment.
Data Source: Dubai Land Department