Demand for ready properties grew in the UAE in the first quarter of 2024 as tenants are increasingly opting for ownership to beat rising rentals.
According to the data released by Property Finder, the first quarter of 2024 opened up to strong demand for existing projects across both Dubai and Abu Dhabi unlike the first quarter of 2023 where off-plan transactions soared high.
Rents have been consistently on the rise over the past three years after the pandemic. It is expected that this upward rental trend will continue in 2024 also due to unprecedented demand from the rising population. Rising rentals have prompted residents in the UAE to resort to buying properties in Dubai and Abu Dhabi, which will help residents save on rentals and also see their property value appreciating.
“2024 has opened up to an interesting and promising phase of growth. We can see a more diversified demand and we are positive of the impact this will have in the months to come,” said Cherif Sleiman, chief revenue officer, of Property Finder.
Data showed that the existing/ready market in Dubai registered almost 19,600 transactions in Q1 2024, increasing its market share to 54 per cent of the total transactions compared to around 15,000 transactions, which contributed 48 per cent of the total transactions in Q1 2023. This performance witnessed a notable volume growth of 30 per cent compared to Q1 2023.
By reaching Dh78.2 billion, transaction values in Q1 2024 contributed to 68 per cent of the existing sales transaction value, compared to 60 per cent in Q1 2023. Consequently, the existing/ready transaction value witnessed a significant increase of 46 per cent compared to Dh53.6 billion in Q1 2023.
Data from the Dubai Land Department (DLD) showed a significant surge in total sales transactions in Q1 2024. The number of transactions recorded was the second highest transaction for the quarter ever recorded, with more than 36,000 transactions compared to 31,000 transactions in Q1 2023, reflecting a substantial increase of 17 per cent.
There were around 16,600 off-plan sales transactions compared to 16,000 transactions in Q1 2023, representing 46 per cent of the total transaction volume compared to 52 per cent of the total transactions in Q1 2023.
814 transactions in Abu Dhabi
Abu Dhabi real estate in Q1 2024 recorded 814 residential transactions representing around 38 per cent of the total transactions compared to 628 transactions that contributed to 27 per cent of the total transactions in Q1 2023. This was a notable growth of 30 per cent from Q1 2023. By reaching Dh1.74 billion, the existing/ready transaction value in Q1 2024 contributed to 29% of the total sales transactions value compared to 27% in Q1 2023.
The Department of Municipalities and Transport (DMT), Abu Dhabi, saw a slight decrease in total sales transactions (both residential and commercial) as the number of residential transactions reached a quarter around 2,145 transactions compared to 2,286 transactions in Q1 2023.
In the UAE capital, the off-plan market registered around 1,331 sales transactions compared to 1,658 transactions in Q1 2023 representing 62 per cent of the total transactions compared to 73 per cent of the total transactions in Q1 2023, recording a significant year-on-year decline of 20 per cent in terms of volume.
Dubai stands as a beacon of opportunity in the global real estate market, attracting investors from all around the world with its cutting-edge architecture, strategic location, and dynamic economy. The city's real estate sector, known for its high rental yields, tax incentives, and robust market stability, offers a unique and lucrative investment landscape. This guide aims to navigate you through purchasing and investing in Dubai's property market, whether you're a first-time buyer or a seasoned investor.
Understanding Dubai’s Real Estate Market
Each type of property in Dubai's real estate market offers unique advantages, depending on your lifestyle preferences, investment goals, and budget. A seasoned real estate agency in Dubai can guide you through the selection process, leveraging their market knowledge and expertise to match you with the perfect property.
Residential Properties
Apartments: From luxury high-rise units with stunning skyline views to cozy studio apartments, Dubai offers a wide range of options. These properties are popular among singles, couples, and small families looking for urban living.
Villas: Offering more space and privacy, villas in Dubai are ideal for families or those seeking a luxurious lifestyle. Many villas come with private pools, gardens, and are located within gated communities, providing security and exclusive amenities.
Townhouses: A middle ground between apartments and villas, townhouses offer multiple floors, more space than apartments, and often access to shared facilities like pools and gyms. They are perfect for families who need space but wish to stay connected within a community.
Commercial Properties
Office Spaces: Catering to Dubai’s booming business sector, office spaces range from prestigious locations in downtown skyscrapers to practical spaces in business parks. These are suitable for companies of all sizes, from startups to multinational corporations.
Retail Units: With Dubai being a global retail hub, retail units in bustling malls or standalone shops offer businesses exposure to a diverse and international clientele. These spaces are ideal for brands looking to establish or expand their presence.
Warehouses: Located primarily in industrial zones like Jebel Ali Free Zone and Dubai South, warehouses in Dubai serve logistics, storage, and distribution needs. These are crucial for businesses involved in trading, manufacturing, and e-commerce.
Off-Plan Properties
Off-Plan Properties: These are properties purchased directly from the developer before construction is completed. Off-plan properties are often available at a lower initial price, offering the potential for significant appreciation once the project is completed. This option is attractive to investors looking to capitalise on future market growth. A real estate agency in Dubai can provide access to the most promising off-plan projects from reputable developers, ensuring a secure and profitable investment.
Benefits of Investing in Dubai Property
Investing in Dubai's property market offers an attractive proposition for both local and international investors, distinguished by its high rental yields, tax-free income, and stable market environment. These benefits are underpinned by the city's strategic location, its role as a business and tourism hub, and a forward-thinking regulatory framework that protects investors and encourages growth.
High Rental Yields
Dubai stands out on the global stage for its exceptionally high rental yields, often surpassing those of other major cities. This is a significant draw for investors looking for substantial returns on investment. The demand for rental properties in Dubai is fueled by its growing population, a continuous influx of expatriates, and a thriving tourism sector. These factors ensure a steady rental market, allowing property owners to capitalize on their investments through consistent rental income.
Tax-Free Rental Income
One of the most compelling advantages of investing in Dubai is the absence of income tax on rental earnings. This policy enhances the profitability of property investments, as investors can retain a larger portion of their rental income. Unlike many other countries where rental income is taxed at varying rates, Dubai's tax-free environment presents a lucrative opportunity for investors to maximise their returns without the burden of significant tax liabilities.
Market Stability
The Dubai real estate market is known for its stability, supported by a robust regulatory framework that instills confidence among investors. The Real Estate Regulatory Agency (RERA) and Dubai Land Department (DLD) play pivotal roles in regulating the market, ensuring transparency, and protecting investor interests. This regulatory environment, combined with the city's ambitious development projects and initiatives to attract foreign investment, contributes to the market's resilience. Even in the face of global economic fluctuations, Dubai's real estate market has demonstrated remarkable stability, making it a haven for investors seeking to minimise risk.
Seize the Opportunity Today
Remember, the key to a successful investment in Dubai's real estate market lies in understanding the market dynamics, legal requirements, and the right strategies to mitigate potential risks. With the right approach, investing in Dubai property can be a lucrative and rewarding venture.
RIYADH: Dubai’s real estate market witnessed strong growth in 2023, with rental prices for villas surging 16.2 percent year-on-year in the fourth quarter, official data showed.
According to the latest report released by the Central Bank of the UAE, median rental prices for apartments soared by 10.2 percent in the final three months of last year compared to the same period in 2022.
CBUAE added that the rental yield in Dubai also increased to 4.4 percent at the end of 2023 from 3.4 percent at the end of the preceding year.
Rental yield is the percentage of the property value received over a year through client earnings.
The report noted that residential real estate sales transactions in Dubai increased by 20.7 percent year-on-year during the last quarter of 2023.
The data revealed that lease rates in Abu Dhabi posted mild growth rates in the fourth quarter.
According to the central bank, the median rental price for villas and apartments in Abu Dhabi marginally rose by 2.3 percent and 1.8 percent respectively in the fourth quarter of 2023 compared to the same period of the previous year.
Residential real estate sale transactions in Abu Dhabi also increased by 33.9 percent in the fourth quarter, driven by a 175.5 percent surge in apartment sales.
Strong growth in the tourism sector
The report added that the total count of hotel guests in Abu Dhabi surged to 4.1 million in the first 10 months of 2023, representing a rise of 28 percent compared to the same period in 2022.
The average revenue per available room in Abu Dhabi also witnessed a 24 percent year-on-year increase, reaching 293 dirhams ($78.12).
Data from the 12 months of 2023 indicated that Dubai maintained its status as a leading global tourism destination.
Hotel occupancy rates in Dubai rose to 77 percent, a 4 percentage points increase from the corresponding period in 2022 and 2 percentage units higher than the pre-COVID-19 figures of 2019.
CBUAE added that the influx of international visitors to Dubai reached over 17 million in 2023, representing a 19.4 percent rise compared to 2022.
Transportation rebounds
According to the report, Abu Dhabi Airports experienced a substantial increase in passenger traffic, reaching almost 23 million commuters in 2023, up 44.5 percent year-on-year.
Similarly, Dubai’s airports welcomed 87 million visitors last year, a 31.7 percent growth compared to 2022.
Global news headlines may make for grim reading, but our experience supports the view that the UAE remains a bright spot in the world economy
The UAE economy has shown remarkable resilience on all fronts
Despite interest rates being at a near 20-year high and inflation remaining stubborn enough to justify a ‘higher for longer’ approach by the Federal Reserve – a situation that directly impacts dollar-pegged markets – there is plenty of room for optimism about the UAE’s commercial real estate sector and the wider economy, in 2024.
Not everyone thought it would be this way. At the start of last year, many industry observers were uncertain about the trajectory of the market. But now, well into the rate hike cycle, it appears that the UAE economy has weathered the storm and shown remarkable resilience on all fronts.
Commercial real estate growth
As we continue to compile and analyse real estate data for the financial year 2023, it is clear from the first three quarters that commercial real estate in the UAE experienced strong growth, despite the headwinds.
Aside from relatively strong fundamentals, with the UAE’s GDP up 3.7 percent and non-oil growth rising by 5.9 percent in the first six months of 2023, commercial real estate prices were also buoyed by rising demand. This was partly due to the UAE’s growing population, as start-ups, entrepreneurs and investors flocked to the country from around the world, attracted by its ‘safe harbour’ status, lifestyle, and attractive business environment.
Prices were also buoyed by the limited number of new assets coming on-stream during the year. Much of the new commercial space that was delivered in 2022 was absorbed in 2023, which meant continued rising demand translated into rising prices per square foot.
For example, there has been consistent demand for commercial property in Dubai International Financial Centre (DIFC) and Downtown Dubai, in addition to robust demand in Tecom and Dubai Media City.
For Emirates REIT, the occupancy rate across its portfolio of commercial, education and retail assets in the UAE reached 87.3 percent in Q3 2023 which is a year-on-year rise of 5.4 percent. We anticipate this continuing in 2024, with the overall economy growing at a clip, and the limited supplies of new commercial property coming on to the market.
It is clear from the first three quarters that commercial real estate in the UAE experienced strong growth
Sure, global news headlines may make for grim reading, but our experience supports the view that the UAE remains a bright spot in the world economy – with the government spearheading and executing ambitious growth plans and creating the type of stable yet dynamic market that excites investors and builds confidence.
While macroeconomic numbers can reveal significant details about the state of the real estate sector and the wider investment environment, much can also be gleaned from everyday observations. We can see with our own eyes the high volume of traffic on Dubai’s roads and high footfall in malls, restaurants and on the transit network.
AsWith Dubai carving the way as a competitive and outstanding corporate and tourism center, a large space for real estate investment opportunity, as indicated in the scorching real estate market is remaining high.
Recent performance reports, which show the emirate contributed significant growth in the property sector with large volumes of purchases and sales during the main two months of 2024 with high momentum which provides visible transition from the last year performance.
Boasting major infrastructure upgrades, an invigorated economy and a growingly heterogeneous population, Dubai is a melting pot of ingredients that are conducive to a residential area that will prosper. Let’s scrutinize more closely the source which keeps the market going and act as a spotlight on the sky bound property sector of Dubai.
Robust Start to the Year
Kicking off 2024 on a high note, Dubai witnessed a 30.91% increase in residential sales values during January and February compared to the same period in 2023. Transaction volumes also reflected healthy growth, with nearly 22,900 deals inked – an impressive 26.6% jump year-on-year.
These figures set the stage for another blockbuster quarter, with the market on track to surpass Dh100 billion in total sales through over 30,000 transactions in Q1 alone. Such strong performances point to continued buyer appetite across different property segments.
Government Initiatives Driving Growth
A sturdy foundation of all the major steps taken by the government to stimulate the market activity, long-term, is the answer to realty growth in Dubai. Economic Vision 2040 targets to make the economy thrive and stay as top tourist and business address worldwide.
The set of agendas is headed by Economic Agenda D33, which is geared at achieving two goals: the adoption of new economic sectors except for oil and the transformation of the emirate into a hub for innovations, entrepreneurship and talent. Dubai has been put under the world spotlight to the virtue of mega infrastructure ventures such as Expo 2020.
Such farsighted strategies lay a sound foundation for a dynamic and ambitious market environment. By understanding the different emotions that can be induced by music, we can tap into these powerful cognitive ties and harness their ability to affect our minds and behaviours. While putting a clear long-term vision about what’s going to come, investors gain market comfort – and in turn, there appears a rise in the level of interest in lucrative real-estate projects in Dubai.
Population Growth Spurs Demand
Dubai is witnessing impressive population growth that will drive ongoing housing needs. Current resident numbers have surpassed 3.65 million and are projected to reach 5.8 million by 2040 – an increase of over 2 million people.
To accommodate this influx, around 30,000 new residential units will need to be completed annually over the coming years. As more families put down roots in the emirate, from young professionals to retirees, demand across housing segments from affordable to luxury is set to stay robust.
Infrastructure Developments Attract Buyers
Megaprojects are expanding Dubai’s urban fabric at a rapid pace. From large-scale developments like Dubai Creek Harbour and Dubai South to upcoming districts like Dubai Food Park, these integrated communities are transforming previously undeveloped areas.
Lavish infrastructure investments pour billions into metros, roads and other connectivity links to service new micro-markets. As vibrant live-work-play destinations take shape, buyers are drawn to their thriving investment potential and lifestyle perks. Purchasing early allows reaping capital gains as areas appreciate over time.
Revved Up Rents Support Cash Flow
Dubai’s rental market remains a sweet spot, with sustained rental increases maintaining an appealing income stream for investors. Tight supply and high tenant demand ensure rents retain an upward trajectory across most locations, according to real estate consultancies.
Landlords benefit from solid rental yields, with average returns ranging from 4-6% on apartments to 6-8% on villas. This steady cash flow makes property an attractive asset, hedging inflation risks. As rents rise, so does the capital value – a win-win for shrewd property owners.
Strong Fundamentals Underpin Growth Outlook
Recording 3.1% economic growth in 2023, Dubai is capable of maximizing the potential and reaching the projected 3.5% growth level. Stability of an economy which rests on its diligent diversification and innovatively driven sectors, such as exports, tourism and financial services, is ensured by the global crisis.
Meanwhile, the real estate supply-demand balance remains skewed with demand consistently outstripping new completions. This supports ongoing price appreciation and rent escalations across different locations. Experts project Dubai property values will increase by another 5-15% in 2024.
Further fueling optimism are growing business opportunities arising from strategic partnerships and Expo 2020 legacies. As Dubai cements its status as a global business hub, more companies will set up regional headquarters – driving both the office and housing markets.
In Conclusion
Backed by strong economic and population growth fundamentals, Dubai’s real estate sector shows no signs of losing its shine. With the government accelerating long-term development plans and infrastructure spending, the property market outlook remains bright.
As Dubai continues transforming at breakneck speed into a smart global megalopolis, investors are wise to seize opportunities in this high-potential landscape. From affordable family homes to luxury waterfront villas, different segments offer lucrative returns. With demand far outstripping supply, Dubai property is primed to sparkle for many years to come.
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UAE’s real estate sector has progressively become a magnet for international investors. Average home prices in Dubai climbed by 19.6% in the year leading up to September 2023, with average prices for apartments rising by 19.7% and for villas by 18.9%, according to CBRE UAE Real Estate Market Review Q3 2023.
The blend of world-class infrastructure, strategic geographical location, strong ROI, and dynamic choice between ultra-modern and traditional-style homes define UAE’s appеal. If you are a US buyer thinking about making an investment move into the UAE real estate market, this article will provide you with all the information you need before you go.
Why Invest in UAE Real Estate?
Investing in UAE's real estate comes with an array of advantages:
High ROI
The Dubai Sales Market Report for 2023 by Bayut shows that apartment complexes in prime locations, such as Jumeirah Village Circle, Dubai Silicon Oasis, and Jumеirah Lake Towers, have yearly rental returns of 8 to 9%, which is higher than many other leading worldwide markets.
Tax-Free Rental Income
Tax-free rental income in the UAE is a significant draw for international investors, including US buyers, offering unrivaled financial rеturns and increasing the market's appeal compared to taxablе rental incomes elsewhere.
Exponential Capital Gains
An article in Arabian Business cites statistics collected by ValuStrat analysts, who found that capital values throughout the Emirate climbed by almost 20% in 2023. Villas increased by 23% year-over-year, while apartments increased by 14%.
Pro-Investment Policies
With new visa rules linked to property purchases, the UAE offers an attractive package for US buyers. The visas according to the new rules are:
Investor Visa: Valid for 2 years, requires a property with a markеt value of at least $204,000
Retirement Visa: Valid for 5 years, requires a property with a markеt value of at least $272,000.
Golden Visa: The coveted 10-year visa now requires a property with a market value of at least $545,000
Strategic Location
UAE’s central position between Asia, Africa, and Europe, and its superb connеctivity drive a constant demand in the property market.
Here's a comparative snapshot of rental yields across major global cities according to Global Property Guide (September 2023):
City
Rental Yield
Dubai
6.13%
Paris
4.72%
Singapore
4.78%
Malaysia
5.16%
Tokyo
4.16%
As evident, Dubai offers far greater rental yiеld than other popular cities, reinforcing its worthiness for real estate investment.
Understanding the UAE Real Estate Market
To thrive in the UAE property market, you've gotta understand what makes it stand out compared to the US. Unlike most Western countries that focus on home ownership, here it's all about investors cashing in on rentals. The cherry on top? In some areas, foreigners can own property outright, and the UAE government keeps refining property laws to make investments even more alluring.
Regulatory Landscape for Foreign Real Estate Ownership in UAE
Here's a breakdown of the laws and regulations surrounding real estate ownership for US buyers planning to invest in UAE property:
Freehold Vs Leasehold
Unlike in the US, where foreign investors enjoy full ownership rights, the UAE operates a dual-ownership system with both freehold and leasehold properties. In designated Freehold areas, foreign buyers can own property with complete land, building, and transfer rights. Leasehold ownership, on the other hand, allows the investor to have a long-term lease for a maximum term of 99 years.
Registration And Fees
Purchasers are required to register with the relevant land department, i.e., Dubai Land Department (DLD) or Abu Dhabi Municipality, depending on the property's location. Registration fees range between 2-4% of the property's purchase price.
As evident, Dubai offers far greater rental yiеld than other popular cities, reinforcing its worthiness for real estate investment.
Understanding the UAE Real Estate Market
To thrive in the UAE property market, you've gotta understand what makes it stand out compared to the US. Unlike most Western countries that focus on home ownership, here it's all about investors cashing in on rentals. The cherry on top? In some areas, foreigners can own property outright, and the UAE government keeps refining property laws to make investments even more alluring.
Regulatory Landscape for Foreign Real Estate Ownership in UAE
Here's a breakdown of the laws and regulations surrounding real estate ownership for US buyers planning to invest in UAE property:
Freehold Vs Leasehold
Unlike in the US, where foreign investors enjoy full ownership rights, the UAE operates a dual-ownership system with both freehold and leasehold properties. In designated Freehold areas, foreign buyers can own property with complete land, building, and transfer rights. Leasehold ownership, on the other hand, allows the investor to have a long-term lease for a maximum term of 99 years.
Registration And Fees
Purchasers are required to register with the relevant land department, i.e., Dubai Land Department (DLD) or Abu Dhabi Municipality, depending on the property's location. Registration fees range between 2-4% of the property's purchase price.
Building a Budget for Real Estate Investment in UAE
Real estate investment isn't just about the property price. Here's a closer look at the costs to consider:
Deposits: Buyers mostly have to pay at least a 20% deposit of the property purchase price.
Stamp Duty: There's a 4% DLD fee on the property’s purchase price in Dubai. Other emirates may have different fees or no fees at all.
Agent Fees: Estate agent fees typically range from 2-5% of the purchase price. It can be negotiated depending on the property and agent.
Appraisal Fees: If a mortgage is required, an appraisal fee between AED 2,500 (USD 680) and AED 3,500 (USD 950) is applicable.
Mortgage registration fee: 0.25% of the registered loan amount.
Other fees: There may be other fees associated with buying property in the UAE, such as legal fees, property management fees, and service chargеs.
Profiling Potential Pitfalls
Investing in UAE real estate isn't without risks:
Market Volatility: Like most markets, the UAE property market experiences ups and downs. Absolute vigilance and cautious decision-making are prudent.
Changes in Legislation: UAE laws related to property ownership may change, causing foreign buyers to adapt.
Mortgage Risks: If the property valuation is less than the mortgage, the buyer may need to pay the difference.
Mitigation involves thorough market understanding, taking professional advice, and diverse portfolio management.
Conclusion
An investment in UAE real estate can rеap generous rewards if done wisеly. From understanding the market's unique ways and making smart choices to selecting the right type of property for investment - every detail counts.
RIYADH: Real estate transactions in four of the UAE’s emirates surged in 2023 as they recorded a combined 22.6 percent annual increase in value – totaling 765.1 billion dirhams ($208.34 billion).
Driven by 193,500 transactions across Dubai, Abu Dhabi, Sharjah, and Ajman, the steady growth highlights the sector’s contribution to the national economy and its growing appeal, evidenced by a significant rise in both local and international investor interest.
According to official data from local real estate departments in the emirates, Dubai maintained its lead in terms of transaction values in the UAE, with dealings surpassing 634 billion dirhams in 2023, marking an annual increase of 20 percent, as reported by the Emirates News Agency, WAM.
It also recorded more than 166,400 transactions in 2023, marking a 36 percent increase compared to 2022.
In Dubai, there were 157,798 investments attributed to 113,655 owners, among whom 71,002 were new investors, marking a 20 percent increase. Moreover, the percentage of non-resident investors rose, constituting 42 percent of the total new investors.
The UAE’s capital, Abu Dhabi, experienced a surge in economic activity as the number of property agreements reached 87.1 billion dirhams, involving 38,404 sales and mortgage transactions across various units in the emirate.
The value of real estate mortgages in Abu Dhabi totaled 12.2 billion dirhams, involving 22,800 agreements, marking a 19.5 percent increase compared to 2022.
The capital also experienced a surge in local investors by 71 percent and foreign and non-resident investors by 175 percent.
Meanwhile, the emirate of Sharjah recorded a volume of property deeds totaling 27.1 billion dirhams in 2023, marking a 13.1 percent increase compared to 2022.
This comes as the trading volume of non-Arab foreign investors in Sharjah surged by 165 percent, with the number of properties traded increasing by 131.7 percent compared to 2022.
On the other hand, the value of mortgage transactions in the emirate reached 7.5 billion dirhams.
Ajman’s real estate market also experienced significant growth in 2023, with deal value surpassing 16.9 billion dirhams, marking a 43 percent increase from 2022.
This surge was driven by 11,500 real estate transactions, with a total trading volume reaching 10.2 billion dirhams out of 8,675 trading transactions.
(MENAFN) The Dubai Land Department reported substantial activity in the real estate sector for the past week, with transactions totaling 13.7 billion dirhams across 3,653 transactions. These transactions encompassed various types, including sales, mortgages, and gift transactions. Sales transactions dominated the landscape, with 2,920 deals amounting to 8.14 billion dirhams, followed by 579 mortgage deals totaling 5 billion dirhams, and 154 gift transactions valued at 541 million dirhams.
Among the sales transactions, ready sales accounted for the majority share, comprising 1,356 deals amounting to 5.07 billion dirhams, representing 62.2 percent of the total transaction value. Additionally, planned sales contributed significantly, with a total value of 3.07 billion dirhams stemming from 1,564 deals.
In terms of geographical distribution, the Jumeirah Village Circle area emerged as the leader in sales value, with transactions amounting to 470 million dirhams from 262 deals. Following closely was the Business Bay area, recording 221 deals worth 447 million dirhams, while the First Zabeel area secured the third position with 137 deals valued at 438 million dirhams. Notably, the Burj Khalifa area and Palm Deira area also witnessed substantial transactions, with 85 deals totaling 428 million dirhams and 49 deals amounting to 402 million dirhams, respectively.
The past week witnessed several noteworthy transactions, including the mortgage of a plot of land in the Hasyan II area valued at 3.2 billion dirhams. Additionally, a significant deal involved the sale of villa land within the Bulgari Palaces project in the Jumeirah Bay area, amounting to 155 million dirhams.
Overall, the robust activity in the Dubai real estate market reflects continued investor confidence and interest in the region's property sector. With significant transactions occurring across various segments, the market demonstrates resilience and potential for growth amidst evolving economic conditions.
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Developments launching units to the market this season include freestanding waterfront villas and towers with long lists of wellness amenities
Dubai home sales continued to pick up pace at the start of this year, building on last year’s boom, when transaction levels hit an all-time high.
The city's thriving high-end property market continues to attract affluent buyers from around the world seeking luxurious homes in the desert metropolis. In January, the city logged a record AED 35.4 billion (US$9.6 billion) in sales, a 27% increase from the same period last year, according to the Dubai Land Department. Last quarter, Dubai led the world in sales of residential properties $10 million and up.
“There have been some very exciting developments to kick off the year—interest and mortgage rates are dropping after some intense hikes, which is good news for a lot of potential buyers,” said Mark Richards, managing director of Dubai-based brokerage LuxuryProperty.com.
“Those who are just on the cusp of the prime real estate market have an ideal opportunity to make the jump to the next level with access to great financing options,” he added.
Dubai had the largest luxury-home price growth among 30 global cities in 2023 with values surging 17.4%, Mansion Global previously reported. However, price gains have now begun to slow, making the city even more attractive to potential home buyers. British real estate company Savills predicted the U.A.E. city’s housing activity will return to more normal levels in 2024, with price growth between 4% and 5.9%.
“Despite its recent exceptional performance in leading global price growth, this trend is unlikely to be sustained for much longer. It is anticipated that by the end of 2024 or the beginning of 2025, the market will witness a moderation in growth levels or even a potential correction in certain areas or types of properties,” said Oriol Font, CEO of Luxhabitat.
“Dubai is poised for further development as a prominent residential destination for high-net-worth individuals,” Font said, adding that buyers are attracted by the lifestyle it offers compared to other countries in the region.
Below are five luxury projects that have launched sales since the beginning of the year.
Altissima Al Barari, Sheikh Mohammed Bin Zayed Road, Dubailand
Altissima is the final and most luxurious addition to Al Barari, an eco-friendly development inspired by the “tree of heaven,” also known as Ailanthus altissima.
The collection offers 23 seven-bedroom villas that come with a minimum of eight bathrooms. Internally, each home boasts an elevator, a car wash, dual walk-in closets, a nanny room, a driver’s room, a maid’s room, a home cinema, an office, a roof lounge, a hot tub, a gym and a spa.
Each property has a swimming pool, too, along with a garden, and parking for three cars. Additionally, there is a barbecue area, a pool house with a kitchen and bar, as well as a sunken seating area. Each villa also comes with its own altissima tree planter.
The development features many health and wellness facilities, such as a sports complex, jogging tracks, a 6-kilometer cycling track, a spa, and a library that also serves as a business center. It also offers plenty of entertainment venues including an open air cinema, a full-service hair salon, a nail salon and an award-winning organic restaurant.
Sales of Altissima Al Barari were launched in January.
Number of Units: 23
Price Range: Starting from AED 40 million
Developer/Architect: Al Barari Dubai
Unit Sizes: Seven-bedroom villas
Amenities: Award-winning organic restaurant the Farm, a retail center, spas, gyms parks, landscaped gardens, urban beach and lagoon, cycling track and jogging trails.
Mercedes-Benz Places, Al Asayel St., Downtown Dubai
Nestled in the heart of Dubai, this development is the first branded residence by automaker Mercedes-Benz in the world. A collaboration between the luxury car maker and Emirati property developer Binghatti, the development draws upon the creative heritage of both brands and features a distinctive bullet-shape facade.
Towering 341 meters above the scenic Dubai Water Canal, the 65-story building includes 150 apartments and penthouses. Residents will be minutes away from Dubai Mall and the avant-garde Museum of the Future. The project also offers unobstructed views of the iconic Burj Khalifa tower.
All units boast ceiling heights of 4.2 meters, or almost 14 feet, providing a sense of spaciousness and luxury. Each unit comes with its own private pool, offering residents a place to relax within the confines of their home.
The building will also offer a host of high-end and tailored services, including chauffeurs and a concierge, automated valet parking and infinity swimming pool terraces.
Mercedes-Benz Places by Binghatti was launched earlier this year and construction is expected to be completed in 2026.
Number of Units: 150
Price Range: Starting from AED 8.9 million to AED 100 million
Developer/Architect: Binghatti
Unit Sizes: Two-, three- and four-bedroom apartments, and five-bedroom penthouses
Amenities: Restaurants, sports and wellness zones, lounges, electric vehicle charging stations, chauffeur service, valet parking. Each unit will come with a private swimming pool.
Harrisoni La Mer, La Mer Beach, Jumeirah
Situated on the La Mer beach in Jumeirah, the Harrisoni villas are a tranquil haven in one of Dubai’s prime locations.There were only two villas offered at the January launch. The name “Harrisoni” comes from a rare species of coral found only in the Arabian Gulf. Each villa is unique, hidden from outsiders, and only accessible to the future residents and their guests. At the same time, the project is only 10 minutes to the city center and 100 meters to the shore.
Boasting a total area that spans more than 10,700 square feet each, the villas feature floor-to-ceiling windows facing the sea, offering future residents fresh ocean air, scenic sunsets and the sound of waves. Homeowners can also enjoy the cityscape, with a roof terrace offering unobstructed views of Burj Khalifa and Dubai’s skyline.
Designed by XBD Collective, the interiors of the villas are a fusion of Miami-style architecture and traditional Arabic influences. Natural materials like limestone and wood complement contemporary styles, and strategic use of natural teak wood adds warmth.
Expected UAE Eid Al Fitr dates, Schengen visa waiver, tax consultation, Dubai real estate analysis, weather forecast and more of the top stories this week
UAE residents are looking forward to the Eid Al Fitr holidays and astronomers in the country have revealed expected dates for moon-sightings in the country.
As residents and citizens decide what to do with time off work, travel specialist Skyscanner has revealed popular visa-free travel ideas for people looking for an international holiday after Ramadan.
Before then, however, weather experts are forecasting another spell of rainy weather in the UAE.
Also in the headlines this week was news that the GCC has entered into negotiations with the European Union to secure Schengen visa-waiver for citizens, Saudi Arabia clarified a ban on “lottery” retail promotions and Qatar Airways teased a new-look First Class cabin on part of its fleet.
Dubai real estate continued to be a hot topic, with analysts giving views on the suitability of villas, townhouses and apartments for investors.
Catch up on 10 of the biggest stories this week as selected by Arabian Business editors.
UAE Eid Al Fitr 2024 likely to begin on April 10, expected dates for long holiday revealed
Eid Al Fitr, the important religious holiday that marks the end of Ramadan, is expected to fall on Wednesday, April 10, 2024, according to Ibrahim Al Jarwan, Chairman of the Board of Directors of the Emirates Astronomy Society, based on Islamic astronomical calculations.
Al Jarwan explained that top scholars and experts studied the lunar calendar cycle and concluded that the first day of the month of Shawwal, which directly follows Ramadan, will be April 10. This means that Muslims from the world over will be fasting for a period of 30 days during Ramadan.
The UAE Ministry of Finance (MoF) has announced the launch of a digital public consultation to gather the views of relevant stakeholders on the implementation of the Global Minimum Tax (GMT) or Global Anti-Base Erosion Model Rules (Pillar Two) (GloBE Rules) as well as other tax matters in the UAE.
The consultation will be open from March 15 2024 to April 10, 2024, and accessible via the Ministry’s website or the UAE’s Government Portal.
Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai announced the change on social media.
He said: “We approved extending the validity period of the UAE passport from five to 10 years for Emiratis aged 21 and above. The new amendments include further facilitations and comprehensive digital services to be provided by the relevant authorities.”
Schengen visas are essential for citizens from non-EU countries. Image: Shutterstock
GCC Schengen waiver: UAE, Saudi Arabia, Qatar, Kuwait, Bahrain and Oman pursue visa-free travel to Europe
Secretary General of the Gulf Cooperation Council (GCC) Jasem Mohamed AlBudaiwi met in the Belgian capital, Brussels, with the Special Representative of the European Union (EU) for the Gulf region Luigi Di Maio. During the meeting, they discussed the GCC-European bilateral relations, including issues related to the visa waiver process for GCC citizens in the Schengen area.
Additionally, views were exchanged on various regional and international bilateral issues, according to the GCC General Secretariat. The Secretary General said that the GCC countries look forward to strengthening cooperation between the GCC member states and the EU to support and enhance stability and development in the region and the world.
Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai
Sheikh Mohammed announces Nakheel, Meydan to merge under Dubai Holding
As Eid Al Fitr approaches, and schools prepare for extended, spring term holidays, global travel marketplace Skyscanner has identified visa-free travel destinations for residents planning to make use of the holidays.
Dubai real estate: Should you invest in a villa, townhouse or apartment in 2024? Experts weigh in
Dubai’s real estate sector is evolving rapidly, with new developments expanding to new areas. Due to this, investors now face important choices around where and what type of property offers the best opportunities.
Villas, townhouses and apartments all have different features that may appeal more or less depending on the goals and priorities of buyers.
Qatar Airways Group Chief Executive Officer, Badr Mohammed Al-Meer, has revealed several major new developments in line with his vision for the future of Qatar Airways.
Designed to invigorate the global airline and its group of businesses, his roadmap for success includes innovation as the key pillar, which is reflected in Qatar Airways’ upcoming products and services, including the introduction of new First Class cabins on some of its fleet.
The ministry summoned both commercial establishments and individuals who have organized such activities and emphasised that it is working to ensure that regulatory procedures are followed and violators are referred to the Public Prosecution.
According to the Anti-Commercial Fraud Law and its Executive Regulations, it is illegal to require a purchase in commercial competitions as a condition for participation. The law stipulates that competitions may not include anything that violates Sharia law or customs observed in the Kingdom.
Image used for illustrative purposes only. Image: Canva
UAE weather: Rain, strong winds and cooler temperature forecast with a chance of thunderstorms
In an advisory, the NCM forecasts an increase in cloud cover with the potential for light to moderate rainfall. There is a chance of heavier downpours with intervals of lightning and thunder, leading to a noticeable drop in temperatures.
While the UAE rain is expected to ease by Tuesday evening, the report warned against potential hazards. Strong winds are also anticipated, shifting from south-easterly to north-easterly and eventually northwesterly.
