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Dubai home sales surged 55.9% in April

 

 

 
 

Dubai’s real estate continued to attract investors and end-users as home sales surged on rising demand in April despite a steady rise in prices, the latest data shows.

Home sales recorded year-on-year growth of 55.9 per cent last month as the demand for villas and apartments remained intact. However, home sales transactions registered a 17.4 per cent decline month-on-month basis.

 
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“The month-on-month performance saw cash and mortgage sales of ready properties decline 13 per cent and off-plan Oqood (contract) registrations down 23.3 per cent,” according to the ValuStrat Price Index (VPI).

Real estate shines in post Expo

In another development, Property Finder’s proprietary demand data showed that the emirate recorded 6,983 real estate sales transactions worth Dh18.2 billion in April, the highest ever for the month since 2009.

Secondary market sales transactions, comprising 60 per cent of the total, constituted 4,212 transactions worth Dh12.86 billion, while off-plan properties, comprising the remaining 40 per cent, constituted 2,771 properties worth a total of Dh5.33 billion.

The real estate witnessed 45.48 per cent more transactions this April this year compared to the same month last year, resulting in a 66.62 per cent spike in value. This is broken down into a 46.2 per cent increase in the secondary volume and a 63.86 per cent increase in value, as well as a 44 per cent increase in off-plan sales transactions and a 73.68 per cent increase in value, according to Property Finder’s data.

“All eyes were on the real estate performance post Expo 2020, and with April 2022 performing the highest since 2009, the data is a strong testament to the growing appeal for the Dubai Real Estate Market. We also see a positive sentiment for investment opportunities following various governmental initiatives, including the recent new categories added to the golden visa rules, making Dubai’s properties one of the most preferred investment assets for the long term,” said Scott Bond, UAE country manager at Property Finder.

Slow progress

Haider Tuaima, director and head of real estate research at ValuStrat, said Dubai real estate prices would continue to rise this year but at a slower pace.

“So far, transaction volumes have exceeded forecasts; however, as prices increase to potentially unaffordable levels, together with rising interest rates, we don’t expect this trend will continue at the same pace seen in 2020 and 2021. Residential transactions in April declined 17.4 per cent compared to March,” Tuaima told Khaleej Times on Monday.

Promising future

Ata Shobeiry, chief executive of Zoom Property, said 2022 looks promising for the Dubai property market and it is expected to pack in a solid number in terms of sales transactions and figures.

“The recently reformed visa policies, launch of new developments, and a strong recovery will keep attracting overseas investors. The number may not be as high as the 2014 peak, but the growth will certainly be substantial,” Shobeiry told Khaleej Times on Monday.

High-value deals

The residential price index, which posted a one per cent increase in capital values to 79.8 points in April compared to a base period of January 2014, noticed a high demand for luxury properties. The index, which recorded 19 transactions valued at over Dh30 million last month, highlighted a sale of a six-bedroom villa located in Dubai Hills for Dh96 million.

“Capital value growth slows to a sustainable monthly pace for villas, whilst apartments see no significant change. Dubai’s typical villa VPI reached 95.7 points; however, most typical apartments saw little or no monthly difference in price, now at 69.7 points,” according to the report.

Villas in demand

Villas, which represent 13 per cent of the market, saw capital values grow at a slower monthly rate of 1.8 per cent in April and moved closer to hitting January 2014 peak. Average year-on-year villa prices surged 33.8 per cent in April, and the upward trend may continue this year but at a slower pace.

“We expect villas in Dubai to continue to witness high growth, particularly in areas with little or no pending new supply. Some areas will witness the price growth rate decelerate or stabilise,” Tuaima said.

Arabian Ranches (40.6 per cent), Jumeirah Islands (38.8 per cent), The Lakes (36.6 per cent), Jumeirah Village (34.9 per cent), and Palm Jumeirah (34.6 per cent) remained the most popular villa communities in April.

Some areas recorded a nominal increase in villa prices, as noticed in case of Mudon (up 0.9 per cent) and Green Community West (0.8 per cent).

Shobeiry said the villa sector would continue its glorious run during the rest of 2022.

“Both the prices and demand will rise, making them beneficial to more investors and sellers. In particular, top villa communities will continue producing strong figures for the Dubai property market,” he said.

Apartment prices pick up

Apartment prices also picked up in April and recorded a high single-digit growth due to rising demand in the market. The VPI noticed an 8.1 per cent average hike in apartment prices across the emirate last month, while some areas posted solid double-digit growth due to high demand from the investors and end-users.

Apartments in Jumeirah Village broke their records with the most significant number of homes sold in one month since 2010.

“Except highly desired prime locations, most apartments in Dubai will likely see single-digit price increments this year,” Tuaima said.

Palm Jumeirah (20.8 per cent), the Burj Khalifa tower (16.4 per cent), Jumeirah Beach Residence (15.6 per cent), and The Views (10.3 per cent) remained the most popular areas for apartments in April. However, Jumeirah Village and Dubai Sports City both recorded one per cent growth, and Dubai Production City (0.5 per cent) were among the areas that registered the lowest annual price growth last month.

Shobeiry said the gap between the percentage growth of apartment and villa prices would continue to narrow.

“During the first quarter of 2022, apartment prices grew nearly double digit. I believe this milestone will be achieved towards the end of the second quarter as the market sentiments look positive,” he said.

Emaar leads

Emaar remained a favourite developer of the property buyers as the projects developed by the leading real estate company ranked high in the sales chart last month.

Emaar (24.2 per cent), Damac (15.1 per cent), Nakheel (6.3 pet cent), Select Group (3.7 per cent), and Dubai Properties (3.7 per cent) secured the top five positions on the sales chart in April.

Top off-plan, ready homes locations

Business Bay (12.7 per cent), Dubai Creek Harbour (8.8 per cent), and Downtown Dubai (8.8 per cent) led the off-plan locations last month while Damac Lagoons (13.4 per cent), Jumeirah Village (8.4 per cent), Dubai Marina (seven per cent) and Business Bay (4.7 per cent) were the most transacted areas for ready homes.

According to Property Finder’s proprietary demand data, the top areas of interest in terms of transactions for villas or townhouses in April 2022 were Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Damac Hills (Akoya by Damac), and The Springs.

As for apartments for the same period, the top areas of interest were Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay and Jumeirah Village Circle.

 

 

source-www.khaleejtimes.com

Dubai’s secondary real estate market booms in first quarter

 

 

Property investors from the UK, Italy, and France claimed prime spots in the top-10 list of foreign investors in Dubai as the emirate’s real estate sector witnessed the dominance of the secondary market in the first quarter.

The emirate’s resurgent realty market recorded the best ever quarter since 2010, with a total of 20,539 sales transactions valued at Dh55.5 billion.

 
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Investors from India and Pakistan also made significant investments in Dubai real estate during the quarter, which also saw a big increase in Canadian investors and buyers. Investors from Russia, Lebanon, and China were among the other three nationalities in the top-ten list.

 
 
 
 
 
 
 

Secondary market shines

Citing official data, the Zoom Property Insights said the secondary market dominated the real estate sector as it constituted around 58 per cent of total sales transactions, while the remaining 42 per cent of sales were recorded in the primary market.

In April, the Dubai real estate market enjoyed its second highest ever April in terms of transactions, according to the latest data. A total of 60 per cent of the transactions were in the secondary market and 40 per cent in the off-plan market. This represents a 46 percent increase in volume and 67 per cent increase in value year-on-year, and comes after a record-breaking March.

Upward trend to continue

April saw a total of 7,009 sales transactions worth Dh18.3 billion, according to data available on the open data platform of Dubai Land Department. It was also the second highest April on record for sales volume and value, with April 2009 being the highest. Among the top areas for sales transactions in April for villas and townhouses was Arabian Ranches-3 for off-plan, and Dubai Hills Estate for the secondary market.

The market is expected to continue its upwards trajectory with more foreign investors pouring into the market, owing to visa reforms and economic stability. The changing scenario in the Dubai labour law and the abundant entrepreneurial opportunities are also attracting a huge number of investors, according to Zoom Property Insights.

Ata Shobeiry, CEO at Zoom Property, credits overseas investors for the exceptional performance of the property market in recent months.

“The rising demand, property prices, and ROI can be majorly accredited to the influx of overseas investors. Expo 2020 facilitated the visit of many first-time investors, who ultimately decided the market is worth investing in. I believe the recent announcement of the new green residence visa and broadening eligibility criteria for the golden visa will provide more opportunities for foreign investors, resulting in an even better performance in subsequent quarters,” said Shobeiry.

European investors dominate

 

The market remained dominated by European investors during the first quarter, with the UK, Italy, and France occupying the first, third, and seventh spots on the list of top nationalities investing in Dubai. Canadian buyers increased by 116 per cent during Q1 2022 as compared to Q1 2021. Investors belonging to the sub-continent, India and Pakistan, ranked second and eighth respectively, also contributed to the remarkable performance of the property market, according to the Zoom Property Insights.

The number of Russian investors in the Dubai property market has increased by over 65 per cent, as the country enjoys a fifth spot among the top investing countries. Lebanon and China are the other two countries that made significant investments in the Dubai property market during Q1, 2022.

According to Zoom Property Insights, foreign investors belonging to other regions are also expected to enter the market as it continues to show its high performance. Experts believe that 2022 will conclude on a stronger note due to the increasing prices and demand.

 

 

source- gulfnews.com

 

Stars align for UAE to become a global crypto hub

 

LONDON, May 6 (Reuters Breakingviews) - Dubai and Abu Dhabi are making a play for the cryptocurrency crown. Big crypto exchanges like FTX, last valued at $32 billion, are setting up shop in Dubai. There are a number of reasons why it might be to their taste.

Crypto is growing fast: total transactions volumes grew over 500% to $15.8 trillion in 2021, according to Chainalysis. Yet plenty of Western regulators seem to hate it. European Central Bank board member Fabio Panetta and the U.S. Securities and Exchange Commission’s boss Gary Gensler have both compared the asset class to the “Wild West”. Perhaps as a result, even the two largest cryptocurrencies, bitcoin and ether, are yet to have a dedicated supervisory body in the United States and the UK. Singapore has imposed stricter regulation, despite expressing interest in the market.

That leaves a gap for an ambitious locale willing to build its regulatory architecture around crypto, rather than vice versa. Step forward Dubai and Abu Dhabi. In the last few months, the pair have handed out more than 30 licences and passed new laws for crypto exchanges to operate in the cities. The exchanges have responded. Binance is recruiting for over 100 positions in the Gulf read more , while boss Changpeng Zhao has moved from Singapore to Dubai and bought a home there. FTX and Kraken are heading Gulf-wards, too.

 

The mutual love-in has a certain logic. Total private wealth held in the United Arab Emirates rose by $46 billion between 2019 and 2021 as some 5,600 millionaires moved to the country, according to the Global Citizens Report, and an influx of Russian oligarchs read more should amplify the trend. Around 25% of Middle East millionaires already invest in some kind of crypto, data from consultant Knight Frank shows. Meanwhile, local businesses like grocery delivery service YallaMarket and property firms are accepting payments in crypto, and the former has floated the idea of paying salaries in the currency. A global YouGov survey found that trust in cryptocurrencies was highest among adults in the UAE.

A Gulf crypto hub also carries obvious risks. The Financial Action Task Force recently said the UAE wasn’t doing enough to counter money-laundering risks, and crypto’s popularity with criminal elements read more raises the risk that a crypto-fuelled scandal could dilute the UAE’s good name instead of enhance it. On the other hand, if these elements can be managed and regulated then it could equally give the region what it could really use: a leading position in a major financial growth sector.

 

source- www.reuters.com

How wealthy Russians are affecting real estate prices in UAE as they search for a second home

 

 

Sales of luxury villas and premium flats have been booming in Dubai, pushing prices to new highs. The booming business in the real estate sector has been triggered by non-sanctioned Russians who are fleeing their home country amid the threat of an economic meltdown. Property purchases by Russians in Dubai increased by 67% between January and March, as per a BBC report.
 
 
The trend of greater Russian arrivals was witnessed since March 2022. The gulf country is drawing wealthy Russians as UAE has not taken sides in the Russia-Ukraine conflict. UAE had abstained in a United Nations Security Council vote in February to condemn Russia's invasion of Ukraine. It also abstained in a General Assembly vote on 7 April to suspend Russia from the UN Human Rights Council.
 
 
Gulf states like UAE and Saudi Arabia have rejected calls of Western nations to sanction Russia, so its citizens are moving there hoping their money will be safe.
 
 
Real estate demand
 
 
The affluent Russians are looking for homes in the $250,000-$500,000 bracket, as per a TRT World report. Apartments in the affluent neighbourhood of the Dubai Marina are a popular choice. TRT quoted an agent who claimed that “some are even paying a year’s rent in advance”.
 
 
Clearly, they are looking to hunker down there as the war unfolds in Russia.
 
 
While there is no exact figure on the number of Russians in UAE, the evidence from a large number of enquiries from Russians for homes and business setups indicates that the migration is huge. Overall, it is estimated that hundreds of thousands of people have left Russia over the last two months.
 
 
The Russians in UAE are looking for a second permanent home in Dubai for themselves and their businesses. Many start-ups have also relocated to Dubai as it became increasingly hard for them to operate amid the sanctions. Those that dealt with international clients and brands were hit hardest, since most western companies snapped ties. So, moving to UAE made sense. Many global firms like Goldman Sachs, JP Morgan, and Google that shut down in Russia are also shifting employees to UAE.
 
 
Payments in crypto
 
 
Russia’s Central Bank has been cut off from its $630 billion chests of foreign reserves. Some of the country’s banks are disconnected from the SWIFT financial messaging system. Russia has enacted capital controls and banned citizens from exiting the country with more than $10,000 in foreign currency in order to protect its reserves.
 
 
Some have found a way around this problem too, relying on cryptocurrency to make the purchases. Some of the purchasers have an intermediary whom they pay in crypto, and who then converts that to cash to pay the seller on behalf of the buyer, BBC reports.
 
 
FATF lens
 
 
While the UAE does business with Russia, some of the money coming into the gulf country is believed to be from sanctioned Russians. Earlier in March, UAE was grey-listed by the global financial crimes watchdog, the Financial Action Task Force.
 
 
This put the lens on the money that flows into the country, where many transactions are reportedly made in cash. The FATF listing indicates that some of these transactions aid money launderers. The government has said that it is looking to work closely with the FATF to “remedy the identified areas of concern.”
 
 
The UAE’s real estate sector is known to be funded by foreign money. In its 2020 report, the FATF noted that the country had not taken significant steps to monitor its real estate agents.

 

source- ww.timesnownews.com

Dubai tracks highest-ever number of quarterly real estate transactions since 2010

 

 

 

 

DUBAI:  Dubai’s real estate market recorded a total of 25,972 real estate transactions in Q1 2022, marking it the highest number of real estate transactions since 2010 registered in a single quarter and the highest volume since Q1 2014.

The Mo’asher, Dubai’s official sales and rental performance index launched by Dubai Land Department (DLD) in cooperation with Property Finder, highlighted Dubai’s real estate market significant growth and continuous upward trend while it continues to provide vital insights and transparency into the Dubai real estate market.

 

In March 2021, the overall monthly Index for sales recorded 1.249 and an index price of AED 1,215,672, the apartments monthly Index recorded 1.285 and an index price of AED 1,100,294, and the villas/townhouses monthly Index recorded 1.297 and an index price of AED 2,100,519.

Meanwhile, the overall monthly index for rental in March 2021 recorded 0.950 and an index price of AED 51,322, the apartments monthly Index recorded 0.953 and an index price of AED 47,294, and the villas/townhouses monthly Index recorded 0.865 and an index price of AED 131,313.

In Q1 2022, the overall quarterly Index for sales recorded 1.251 and an index price of AED 1,186,002, the apartments quarterly Index recorded 1.26 and an index price of AED 1,067,385, and the villas/townhouses quarterly Index recorded 1.234 and an index price of AED 2,094,633.

On the other hand, thee overall quarterly index for rental in Q1 2022 recorded 0.947 and an index price of AED 51,177, the apartments quarterly Index recorded 0.967 and an index price of AED 46,952, and the villas/townhouses quarterly Index recorded 0.851 and an index price of AED 131,639.

Dubai Real Estate had 8,399 sales transactions worth AED 22.58 billion in March 2022; the number of these sales transactions are the highest recorded in the past 7 years. This is an 83 percent increase in total sales transactions compared to March 2021 and a 109 percent increase in sales value.

During the month of March 2022, 60.16 percent of total sales were for secondary/ready properties and 40.4 percent were for off-plan properties 39.84 percent of total sales.

Additionally in March 2022, the sector saw over 44,783 rental contracts in the Dubai market with 60.28 percent of contracts were new and 39.72 percent were renewals; 78 percent belonged to annual contracts and 21 percent were driven by non-annual.

Q1 2022 had the highest number of real estate transactions since 2010 registered in a single quarter with a total of 25,972 transactions. From these real estate transactions, 20,539 transactions were for sale worth AED 55.51 billion. As for the volume of sales transactions in Q1 2022, the off-plan market transacted 8,616 properties worth a total of AED 16.12 billion, and the secondary market transacted 11,923 properties worth a total of AED 39.39 billion.

In the rental market, Q1 2022 saw a total of 160,530 rental contracts of which 51.89 percent of contracts were new and 48.1 percent were renewals. This is a 4 percent increase in total contract volume compared to Q4 2021. The annual contracts during Q1 were 79.95 percent while non-annual contracts accounted for 20.04 percent.

Looking at the overall market, the top areas that witnessed the most rental transactions in March 2022 were Jabal Ali First (6,259 contracts), Al Warsan First (6,224), Business Bay (5,056), Naif (5,011) and Al Karama (5,007).

 

source- www.dubaiweek.ae

 

Dubai among top 3 places to live for global executive nomads

 

 

 

 

Lisbon tops the table of the best locations for an executive nomad to live, according to new research released on Wednesday by London-based real estate consultants Savills, with Miami featuring second and Dubai third on its index.

The Savills Executive Nomad Index ranks 15 destinations for long-term remote workers. All either have a digital nomad visa programme, or equivalent, or in the case of the US and European countries, are already part of a large economic bloc that allows free movement of people for living or work.

 
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They offer favourable climates year-round, high quality of life and have established prime residential markets. The locations are assessed in terms of internet speed, quality of life, climate, air connectivity and prime residential rents.

 
 
 
 

Paul Tostevin, head of Savills World Research, said: “The modern executive nomad – a distant cousin of the freelance creative working from a cafe in Bali or Costa Rica – owns a villa in the Algarve or a condo in Miami, attends Zoom calls from an airy home office, and hops on a flight back to London, New York, or Geneva for the quarterly board meeting”.

“Provided travel connections are good and high-speed internet is reliable, individuals and families are motivated to relocate and are placing a greater emphasis on health, wellness and overall lifestyle,” he added.

Lisbon tops the ranking thanks to Portugal's high quality of life. Low pollution and a favourable climate are advantages. Lisbon also offers strong physical connectivity, thanks to a well-connected international airport.

Ricardo Garcia, head of residential, Savills Portugal, said: “Tech executives and entrepreneurs are also drawn by Lisbon’s burgeoning status as a tech hub. Real estate costs are low, and there is a strong local talent pool. Companies are moving their headquarters to Portugal. The area is becoming more and more international. I don’t see Lisbon or Portugal slowing down any time soon.”

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Miami is second, a global gateway city, but with a warm climate and beaches, it has grown in appeal as a remote working destination in the US. It has plenty of big-city benefits, such as very good air connectivity, good digital infrastructure, and a strong prime rental market, whilst offering a comparatively good quality of life, Savills said.

 

Third place Dubai tops the index for air connectivity, reaching over 100 countries with more than 240 destinations.

“Remote working enabled business owners from abroad to make Dubai their main hub,” says Helen Tatham, head of residential community sales & leasing, Savills Dubai. “In 2020 rents and sales volumes saw increases not witnessed since 2014, driven both by existing renters who wanted to make Dubai their permanent home, and by an influx of new residents.

“UK nationals have long favoured Dubai for holiday and work, but the market also benefited from new demand from French, German, Swedish and Swiss buyers,” she added.

 

 

source- www.khaleejtimes.com

 

What’s on the wish list for Dubai’s luxury property buyers?

 

 

 

 

 

Mask mandates and social restrictions may have been dropped for the most part, but memories of early-stage pandemic lockdowns continue to influence buyers’ real estate choices in Dubai, agents say. As more end-users come into the market, spacious homes with easy access to lifestyle amenities are in greater demand, in turn setting new sales records.

“In the post-pandemic era, luxury consumers are now looking for open and bigger spaces as buyers are more focused upon their health and mental well-being. This has led to registering record-breaking numbers in villa sales and rentals, as villas provide world-class amenities within the comfort of one’s own community,” says Neeraj Mishra, CEO of boutique real estate agency Scorpion Property.

 

“With more upscale buildings such as Atlantis, The Royal Residences and Six Senses in The Palm Jumeirah, we will continue to witness an increase in luxury projects as the demand from wealthy investors in this sector is on the rise,” he adds.

Capital values for luxury homes in Dubai grew by more than 44 per cent in 2021, the fastest growth among the world’s top 100 urban markets, real estate consultancy Knight Frank says. The pace has continued over the first quarter of this year, with overall total transaction volumes over the first quarter of 2022 at 19,009, the highest total ever, according to data from real estate consultants CBRE.

“As the world recovers from the Covid pandemic Dubai now stands as a strong, vibrant market leader in world-class luxury real estate provision catering to the very top end of a billionaire’s wish list,” says Richard Crossley, Sales Director at the property agent pH Real Estate, listing factors such as the liberal tax regime and excellent quality of life in a crime-free environment.

 

Golden residence

But recent investor interest also follows quick government action on the back of a successful coronavirus vaccination rollout and a slew of immigration and labour reforms, including a relaxation of visa rules and a path to citizenship.

“Even in crisis, Dubai has managed to create demand for luxury homes and hotel apartments,” says Rizwan Sajan, Founder and Chairman, Danube Group.

“The government of Dubai responded quickly and super effectively in controlling the pandemic and that sent reassuring calm to the money markets of the world, which then in turn brought the attention of the major investors and market movers to Dubai. On top of these, the effective handling of the COVID-19 pandemic over the last two years have made the UAE a more appealing, safe and secured place for global investors – who see the UAE and Dubai a safe place to live, work, conduct business and retire. The latest series of property-linked visa reform has made property purchase more attractive – it comes with a 10-year golden visa, depending on the value of investment,” Sajan says.

Real estate investors may obtain a 10-year-long ‘golden’ residence visa when they buy property worth at least Dh2 million following approval of a new rule by Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in mid-April.

“Dubai remains dramatically under-priced per square foot in the luxury real estate world compared to London and New York, then the world’s super rich and knowledgeable had to and have to give serious consideration to moving to Dubai,” Crossley says. “Having said that, they expect the quality and presentation they see in LA or London and won’t accept second best, so Dubai’s top end real estate had to up its game in its design, build quality and finish and give these ultra-discerning buyers what they need and expect: the latest home smart systems, top notch security and privacy.”

 
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Luxury labels

Developers continue to roll out high-end projects, from serviced residences to partnerships with luxury labels, that seek to tick all the boxes on buyers’ wish lists.

Francis Alfred, Managing Director at developer Sobha Realty, agrees: “Luxury investors now view their dream home as a space that is close to nature – preferring waterfront communities that can provide options between luxurious apartments, beautiful villas, or high-end townhouses. High demand can be observed for areas that can offer a holistic experience, complete with lush green spaces, world class amenities, and a wide array of authentic delicacies, retail centres, and entertainment facilities,” he says. The company’s sales over 2021 crossed $1 billion, setting a new record.

With 60 per cent of work on the 8-million-sq-ft Sobha Hartland now complete, Sobha is looking to launch another mega development this year. The new project, Hartland Sanctuary, is valued at $4 billion and cover a 200-acre area in Mohammed Bin Rashid City.

More recently, Damac Properties announced a partnership with Swiss jeweller de Grisogono, for a necklace-inspired twin-tower development at Safa One on the edge of Safa Park.

 

Similarly, in February, Saudi developer Dar Al Arkan announced the W Residences Dubai – Downtown. As the first standalone homes in association with the upscale hotel brand, the development promises uninterrupted views of the Burj Khalifa.

Andrew Covill, Director at estate agents Henry Wiltshire International, underscores how the pandemic has impacted sales at the top end of the market, from high-quality finishes to multi-functional layouts. “Demand for home offices and separation from family living areas are rising, as are gardens or terraces, as widely reported during the pandemic era. These features are highly important given the time many now spend working flexibly from home,” he says.

At the affordable luxury end, meanwhile, Danube recently launched Pearlz, a new residential project in the Al Furjan area. Besides amenities such as a health club, swimming pools and an events area, the development has a doctor on call and a kids’ day care centre.

Some apartments feature foldable wall-mounted beds so living areas can be converted into bedrooms, in line with demands for flexible spaces. Three-bedroom apartments at the development, meanwhile, have their own private pools as well as three parking spots.

Similarly, Sobha too is looking to cater to changing buyer demands. “Today’s homes need to be versatile, and work to enhancing relaxation and comfort, which is why luxury homes with high-end facilities are gaining preference. Investors are seeking spaces that will further their sustainable living ambitions, while also providing a modern edge through various technological innovations,” he says.

 

Sobha homes may now also include additional, under-the-hood features such as wireless home automation, electric car charging stations, single-stack draining systems and leakage-proof plumbing fittings – in line with the low-carbon lifestyle, he adds.

“Sustainable, eco-friendly houses that contribute to reducing the carbon footprint have become a priority for the market.”

Dubai’s luxury market has certainly been altered by the pandemic – whether we go back to work full-time or not. But while end users will continue to benefit when it comes to opportunity costs, investors may need to do a little more diligence before putting down cash.

Luxury property: Abu Dhabi outlook

“There is a limited supply of luxury properties in Abu Dhabi, especially the villa segment. Given the shortage of availability, and with the growth and investment in Abu Dhabi on the rise, we feel that the outlook is very positive. We’ve seen prices increase steadily over the last two years from a seven-year low in 2020, and we expect this trajectory to continue over the next three years,” says Andrew Covill, Director at estate agents Henry Wiltshire International.

Residential prices across the emirate rose 1.5 per cent in the year to March, with villa prices rising 1.1 per cent, according to property consultancy CBRE. The trend is in line with the strength of the wider market, and with a constricted pipeline – just 200 new units were delivered over the first quarter of 2022.

 

 

source- gulfnews.com

 

Dubai apartment, villa prices surge in Q1 as demand rises

 

 

 

The Dubai property market has started the year 2022 on a high note, with the first quarter producing record-breaking numbers as the total transactions reached 19,009 by the end of March, concluding the best first quarter ever in the Dubai property market.

According to Zoom Property Insights, the residential capital value has grown up to 19 per cent annually as the market is progressing rapidly, thanks to the government’s initiatives, visa reforms, Expo 2020 and the influx of foreign investors during the January-March quarter.

 
 
 
 
 
 
 
 

Ata Shobeiry, CEO at Zoom Property, believes that after a strong 2021, the market will continue its golden run in 2022 as well.

“A strong 2021 and the promising start of the year is a sign that 2022 is going to produce good numbers for the market. Villas will continue their growth, while based on the double-digit growth in Q1 2022, it can be expected that the apartment segment will perform better than last year,” he said.

“The property market will continue attracting foreigners with its new developments, lucrative opportunities, and investor-friendly policies,” Shobeiry said.

Popular apartment communities in Q1

The apartment sector, which recorded nearly double-digit price growth during the first quarter, registered an overwhelming response from the buyers, increasing average rates to AED 1,098 per square foot.

Jumeirah Beach Residence, Business Bay, and Dubai Marina -- with nearly 16 per cent, 10 per cent, and 3.4 per cent annual price growth, respectively, dominated the apartment market, according to the Zoom Property Insights.

Downtown Dubai, with around 8 per cent growth, and Jumeirah Lake Towers, with 10.5 per cent growth, are other communities that remained popular among buyers during the first quarter. Palm Jumeirah also recorded a massive increase of nearly 22 per cent and remained a most sought after community in Dubai.

Popular villa communities in Q1

Continuing their dominance, villa prices increased by a little over 20 per cent during the first quarter. By the end of March, the average villa price in Dubai was calculated at AED 1,267 per square foot.

Among various villa communities, Arabian Ranches and Jumeirah Islands remained the preferred choice of buyers as they reported a little over 40 per cent annual increase. They were followed by The Lakes with around 37 per cent price growth while Jumeirah Village and Palm Jumeirah (with around 35 increase each) were other popular villa communities in Q1 2022.

Besides them, Meadows, Jumeirah Park, and Emirates Hills also remained popular with buyers with a growth of 34.5 per cent, 33.5 per cent, and 32.9 per cent, respectively.

 
 

 

source- gulfnews.com

 

UAE Golden Visa: A 10-25% down payment on Dh2m property can get investors started

 

Dubai: Planning for a Golden Visa with a Dh2 million property investment. Then try this payment formula.

The down payment needs to be Dh200,000 (10 per cent of the Dh2 million investment value to be eligible for the Visa) and developers’ instalment schemes can take care of the rest. This is what developers are working on and there will be multiple competitive offers coming property investors’ way. The first of these Visa-linked schemes could hit the market as soon as the Eid holidays are over. (The earlier requirement was Dh10 million for a 10-year residency.)

 

If the buyer wants to do it through a mortgage, the down payment would be Dh500,000 for 25 per cent of the investment. “This is beyond affordable, because not all these Golden Visa property investments need only be through cash sales,” said Firas Al Msaddi, CEO of fam Properties. “There are other countries that offer investment schemes for residency – but the UAE’s updated Dh2 million represents an unbeatable value-for-money on a global scale.

Stock-Firas-Al-Msaddi
According to Firas Al Msaddi of fam Properties: “Offplan as well as mortgage buyers, will be far more motivated to keep their property ownership, pay their instalments on time and think long-term about residency in the UAE.”

Affordability mix

Developer and property brokers say that it’s vital ways are found to ease entry for those buyers who do not have the full Dh2 million in funds available for an outright purchase. This is where direct-from-developer schemes are vital, to convince new investors to go through an instalment scheme – and at the same time make sure they have the Dh2 million equity to qualify for a Golden Visa.

 

Many wanting to sign up for Golden Visas may be new residents in the UAE – and would have to spend a certain time to qualify for mortgages from banks,” said a developer. “This is where developers can offer alternate investment options and speed up the transaction.”

Stock - Masaar from Arada
One of Arada's projects in Sharjah, the 'Masaar'Image Credit: Supplied

2-bedroom apartments to the fore

In the new investment space, two-bedroom units and townhouses could be the ‘gold standard’ for investors. Both formats would – based on current market valuations – conveniently break the Dh2 million mark and there are multiple locations in Dubai that fit the bill. In Sharjah, Arada’s projects have these options and in Abu Dhabi, apart from Aldar projects, investors will be checking out Bloom Living (from Bloom Properties), Reem Hills (Q Properties), and Al Jubail Island.

“The offplan projects are already there – and developers only need to tweak their payment schemes just a little to meet the visa eligibility,” said an estate agent. “Currently, all of the UAE’s main property investment destinations have ready and offplan choices for investors seeking a Dh2 million investment.”

MARKET STABILITY WITH LESS FLIPPING
On both rentals and sales, the Dh2 million Golden Visa schemes will 'enhance' stability for the property market.

"When market is on an upswing, landlords become sellers to realize profits from resales," said Firas Al Msaddi of fam Properties. "The number of eviction notices are hundred times higher than in the past five years, notifying the properties are up for sale.

"On the other hand, tenants are holding on to their existing rented homes as current market rates are often much higher than what they signed up for. With the new Golden Visa rules, many property owners with a visa registered to their properties understand they have to hold on to keep their visa valid, which means more stability for tenants too."

 

source- gulfnews.com

 

Dubai's housing sales smash record on rebound, Russian demand

 

DUBAI

DUBAI'S housing market had its best-ever start to the year, driven by higher demand from local residents and bigger flows from outside buyers including Russians, according to real estate adviser CBRE Group Inc.

Total transactions reached 19,009 in the first 3 months of the year, which "is the highest total ever recorded in the first quarter", according to the CBRE report. The only other period to see higher transaction volumes was the second and third quarters of 2009, when around 33,000 and 23,000 properties changed ownership, said Taimur Khan, head of research at CBRE.

 
 
 

Dubai's property market is recovering from a 7-year slump helped by a combination of factors, including European investors worried about a potential surge in taxes at home and an increase in Russian buyers looking to safeguard their wealth.

Russians have long been big buyers of luxury homes in the glitzy emirate, traditionally featuring among the top 10 nationalities to invest in its real estate. Brokers say they've been snapping up property in recent months as their country faces sanctions over its invasion of Ukraine.

The Middle East business hub has also emerged as one of the favourite destinations for some international firms, including Goldman Sachs, seeking to relocate staff from Russia. "It's international money coming into the market whether it's Russian or from other European countries," Khan said. "But that's focused on the high end and it's not really the driving force behind the bulk of the market. The key segment driving the market is the owner-occupier, where people just decided to commit and purchase."

 
 
 

Average home prices climbed 11.3 per cent in the 12 months through March, CBRE figures show. Apartment prices rose 10 per cent on average, while prices of single-family homes, known locally as villas, surged 20.2 per cent, a by-product of the pandemic where work-from-home dynamics pushed many apartment dwellers to seek out more space.

The area surrounding the world's tallest tower, Downtown Dubai and Business Bay, drew the highest average prices overall. Villas on the man-made island of Palm Jumeirah, popular with wealthy Russians, recorded the highest average price on a monthly basis in March.

Despite the latest surge, prices remain far below their 2014 peak. The average price per square foot for an apartment in Dubai is 1,098 dirhams (S$405), while the rate for villas stands at 1,267 dirhams - 26.2 per cent and 12.3 per cent below the peak respectively.

Rents rose 13.1 per cent on average across the city, according to the real estate adviser, with the wealthier neighbourhoods of Palm Jumeirah, Emirates Hills and Arabian Ranches witnessing the biggest monthly price increases in March.

The rental surge is "very, very significant", Khan said. "There is an issue with the availability of quality homes and that scarcity is going to drive up demand" as developers release stock in phases to maximise returns.

"While average prices and average rents continue to increase, we are seeing a moderation in both sales and rental growth rates in the villa segment of the market," Khan wrote. The rising cost of finance and further tightening of payment plans offered by developers will likely lead to that moderation, he added. BLOOMBERG

 

source- www.businesstimes.com.sg

 

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