UAE property market buzzes with many significant developments from August 28 to September 3, 2023. It features new launches from Swiss Developers, a growing trend of Dubai tenants becoming homeowners, and a record-breaking sale of the most expensive penthouse. We've also got the latest scoop on the Dubai Creek Tower redesign that highlights long-term growth plans as well as the newest land transactions. We'll explore all headline-grabbing developments in the paragraphs ahead offering you a clear picture of current trends in the UAE real estate market.
Expats in Dubai are increasingly becoming homeowners despite slowing rental increases due to a shift towards a long-term perspective on the city. The resilient real estate market has instilled confidence with rising property prices driving the transition. The high-end market is predicted to see steady single-digit growth. Property prices in Dubai grew 48.8% YoY, 19% in 6 months, and 11.6% in 3 months in Q2 2023. The abundance of mortgages and transparent policies by the Dubai Land Department make buying easier. Asteco CEO notes customization, stability through fixed mortgage rates, and potential for capital appreciation as benefits. Ready properties are favored, but choice depends on initial capital.
Further Details: https://www.khaleejtimes.com/business/realty/mortgages-steady-growth-in-property-prices-why-more-dubai-tenants-will-become-homeowners-in-2023-a
Swiss developer Fortimo unveils inaugural UAE build-to-sale project. Remo Bienz, Founder, Co-owner, and board member of Fortimo Group, emphasizes the enduring real estate appeal in Dubai and the importance of preventing speculative bubbles through sustainable growth. The Golf Residence, designed for diverse investor preferences, launched earlier, reflecting Dubai's upward real estate trend driven by international investors. In H1 2023, 50,000 units were transacted in the bustling residential market. Dubai's global hub status and strategic infrastructure projects sustain demand, buoyed by a foreign investor-friendly environment. COP28's expected 70,000 attendees align with projected demand, indicating a continued upswing in Dubai's real estate market, encompassing both sales and rentals.
Further Details: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-attractive-and-speculative-bubbles-preventable
Dubai's luxury property market set a new record with the sale of a three-bedroom duplex apartment on Palm Jumeirah. The property sold for Dh12,387 per square foot making it the most expensive per square foot on the island and being second most expensive in the emirate. The Dh44 million sale was managed by Olga Mannila of Penthouse.ae and acquired by a first-time Russian investor. The previous record, set in February 2023, was a Dh42.9 million apartment at Bulgari Resorts and Residences. Global investors including high-net-worth individuals and institutional investors are driving demand for luxury properties north of Dh20 million resulting in a shortage of available units. He added that with constrained supply and rising prices, the investment opportunity is promising, and Dubai’s luxury property market is forecasted to have a positive outlook for the next 3-5 years. The Royal Atlantis, where the record-breaking sale occurred, has seen prices increase by over 150% since its launch.
A prime land plot in Palm Jumeirah, Dubai was acquired for AED190m ($51.7m) marking one of the highest land transactions in Dubai for 2023. The area covers 56,295 sq ft with plans for a mixed-use development featuring residential, retail, and F&B spaces. According to the Dubai Land Department, Palm Jumeirah accounted for 7.5% of Dubai's total real estate sales this year and saw a 16% increase in residential sale prices in Q2 2023. Palm Jumeirah recorded 210 land deals worth AED4.2bn ($1.1bn) in the first half of 2023, a significant uptick from 137 deals worth AED3.4bn ($926m) during the same period last year. Will McKintosh, Head of Residential, MEA at JLL, emphasized Palm Jumeirah's role as an investor magnet, particularly among high-net-worth individuals.
Further Details: https://www.arabianbusiness.com/industries/real-estate/palm-jumeirah-land-sold-for-52m
Mohamed Alabbar, founder of Emaar Properties and online retail platform Noon, announced redesigning the Dubai Creek Tower project. The redesign comes after a competition involving multiple international firms with construction expected to commence within a year. Emaar Properties aims to complete 45 towers, including 15,000 apartments, in 2023. The company reported robust financials for H1 2023 with revenues of AED 12.3 billion and net profits of AED 4.9 billion marking a 15% increase. Alabbar also revealed long-term expansion plans spanning 15-20 years for Emaar. Noon Company has shown rapid growth since its 2017 launch on the e-commerce front and is focusing on expansion in the UAE, Saudi Arabia, and Egypt. Alabbar also highlighted the listing of Americana Restaurants on stock exchanges in Abu Dhabi and Saudi Arabia with plans to open 250-260 new outlets by year-end.
Further Details: https://www.propertynews.ae/uae/dubai-creek-tower-is-being-redesigned-construction-will-begin-within-one-year-according-to-emaar-founder-alabbar/
Language
Price display
