Highlights of the week | 18th March – 24th March 2024

Sharjah introduces modernized real estate leasing law for 2024 (18^th March)

The Sharjah Consultative Council (SCC) has approved a draft law for 2024 regarding real estate leasing in the northern emirate of Sharjah. The law, which was introduced in the sixth meeting of the first regular session of the eleventh legislative term, aims to regulate the relationship between landlord and tenant in accordance with the existing laws in the emirate. The draft law, which was discussed and reviewed by the Council’s Legislative and Legal Affairs, Appeals, Suggestions and Complaints Committee, is seen as a significant step towards enhancing Sharjah’s attractive environment for investors and families. The draft law also aims to enhance tourist, investment, and residential attraction in the emirate. The law’s wording reflects the living situation of society and aims to bring together all relevant parties in an organized law that keeps pace with developments and demand for the real estate sector in the emirate.

Read more at Sharjah approves draft law on leasing of real estate (zawya.com)

Miral enhances Yas Bay waterfront with two new beaches (18^th March)

Miral, a leading Abu Dhabi destination, has announced the development of two new beaches at Yas Bay Waterfront, The new beaches will span 280 meters each, totaling 560 meters. The West Beach, will be a family destination with beachside play areas, dining outlets, pedestrian walkways and more while the East Beach, will feature outdoor fitness spaces and sports zones for beach football and volleyball. Both beaches will complement the existing leisure and lifestyle offerings at Yas Bay Waterfront.

Read more at Miral to develop two beaches at Yas Bay Waterfront (zawya.com)

Rising competition among Dubai developers amid fast-reducing land banks (18^th March)

Dubai developers are facing competition to buy more plots amid fast-reducing land banks. Development in prime areas like Downtown and Business Bay has reached its peak, leading to higher prices for plots and apartments. Local developers have launched multiple projects and increased their land banks to capitalize on the unprecedented demand. Leading private developer Danube Properties launched over AED 10 Bn of residential projects in 2023 in key locations like Business Bay, Jumeirah Village Circle, and Maritime City. Binghatti Properties spent AED 1 Bn on acquisitions and issued a US$ 300 Mn sukuk. Foreign developers have also entered the property market, driving demand even higher. The prices of plots have jumped over 50% in Dubai in the past few years.

Read more at Dubai: Developers compete to buy land plots as prices soar (zawya.com)

Aldar sets record with AED 137 Million penthouse sale in Abu Dhabi (18^th March)

Abu Dhabi-listed developer Aldar has set a record for the most expensive apartment ever sold in the emirate with its AED 137 Mn (US$ 37.3 Mn) Nobu Residences penthouse. The three-bedroom full floor penthouse, which covers 1,430 Sqm, features a private pool, elevator, & terrace, overlooking Saadiyat Beach. The Nobu Residences, is due for completion in Q2 2027.

Read more at Abu Dhabi’s Nobu Residences breaks emirate’s most expensive apartment record (zawya.com)

Abu Dhabi Real Estate Centre partners with leading portals for enhanced Abu Dhabi real estate transparency (18^th March)

The Abu Dhabi Real Estate Centre (ADREC) has signed Memoranda of Understanding (MoUs) with leading real estate portals Bayut, Dubizzle, and Property Finder to enhance transparency, efficiency, and decision-making in the real estate market. The MoUs aim to provide innovative services, flexible legislation, and transparent data for all stakeholders. They will ensure accurate information for end-users, streamline customer purchase journeys, and improve sector services.

Read more at Abu Dhabi to enhance transparency and efficiency in real estate sector (zawya.com)

UAE advances housing services with new Vilal housing projects (19^th March)

Vilal Housing held its inaugural board meeting, chaired by Abdul Rahim Sultan. The company plans to design and build 50 villas by 2024 prioritizing improving housing services for UAE citizens while maintaining high-quality standards. The board discussed the company’s accomplishments in the preceding year, while outlining the strategic plans and projects slated for 2024. Studies have indicated the need for 215,605 homes for UAE citizens from 2020 to 2030. Key focus areas included leveraging modern construction technologies and providing housing financing through partnerships with banks.

Read more at UAE: Vilal Housing aims at enhancing residential services (zawya.com)

UAE real estate sector poised for growth in 2024 (20^th March)

The real estate market in the United Arab Emirates is predicted to grow further in 2024, with deliveries of about 34,000 and 8,000 units anticipated in Dubai and Abu Dhabi, respectively.  At the JLL panel event, the UAE’s residential industry is anticipated to maintain its strong momentum in 2024, despite rising land prices and building expenses. Property Monitor reports, the housing industry, which last year had the biggest annual price increase of 16.4% in more than a decade, will keep adding to the strong supply pipeline that will be supplied in the upcoming years. Demand for main asset classes has increased due to the UAE’s status as a financial and corporate hub; yet the market for premium spaces is competitive, with gaps in availability for high quality spaces . The real estate market is changing even more as a result of a greater emphasis on sustainability and technological advancements.

Read more at Dubai realty on track to deliver 34,000 units in 2024 (zawya.com)

Abu Dhabi’s property market achieves record AED 87.1 Billion in 2023 transactions (20^th March)

In 2023, real estate sales in Abu Dhabi reached AED 87.1 Bn (US$ 23.7 Bn), setting a new high for the property market as reported by the Abu Dhabi Real Estate Centre (ADREC). The value of purchase and sale transactions increased by 159.5% in the market, while total deals increased by 19.5% to 22,751. Along with the substantial growth in the number of individual investors, there were 1,098 non-resident and 9,448 newly registered investors. One factor driving the market’s expansion was the expansion of project debuts, especially in upscale neighborhoods.

Read more at Abu Dhabi’s property deals surge to $23.7bln in 2023 (zawya.com)

AHS Properties unveils AED 3.1 Billion Casa Canal interiors by Fendi Casa (21^st March)

AHS Properties, a luxury real estate builder located in Dubai, has introduced Casa Canal Interiors by Fendi Casa, an AED 3.1 Bn skyscraper. Units span between 4,500 and 30,000 Sqft in size, consists of sky villas, penthouses, boutique homes, and sky palaces. It also has a spa, gourmet dining options, private pools, and a cigar room. Abbas Sajwani, CEO of AHS Properties states that the project has cemented its prominence in the luxury real estate industry by selling for AED 2.5 Bn, or 80% of its project value. Casa Canal, which demonstrates AHS Properties’ ambition to pushing limits and reinventing luxury living, is a clear example of their passion to creating luxurious homes and buildings.

Read more at Dubai: 80% of Casa Canal project sold out within days of launch (zawya.com)

Dubai’s commercial real estate sector soars with high-end space in demand (21^st March)

Businesses looking to set themselves apart and draw in staff by providing a comfortable work environment are driving up demand for high-end locations in Dubai’s commercial real estate market. With occupancy at its flagship Index Tower in the Dubai International Financial Centre rising by 82% in 2023, Emirates REIT, the largest Shariah-compliant REIT, is observing this trend. An emphasis on the benefits that firms may obtain from investing in a higher-class office rather than on expanding offices at all costs is what is driving this trend. Car, taxi, or metro access to Index Tower’s famous position is valued by the building’s commercial tenants. Thierry Delvaux, CEO, Equitativa (Dubai) Limited stated that employers may benefit immediately from their value of teamwork, and a wellness-focused workplace. Businesses should see speedy payback from these places’ intangible benefits.

Read more at Dubai’s commercial realty reaps major gains (zawya.com)

Modon Properties unveils luxury villas on Hudayriyat Island (22^nd March)

Modon Properties, a subsidiary of Q Holdings, is undertaking the transformation of Abu Dhabi’s Hudayriyat Island into an upscale residential destination featuring two dynamic communities: Nawayef and Al Naseem. Nawayef offers villas boasting sweeping views of the Abu Dhabi skyline and the Arabian Gulf, while Al Naseem caters to families with its low-density layout and array of amenities such as a country club, gym, spa, and mosque. With access to top-notch facilities and extensive cycling tracks spanning over 220km, Hudayriyat Island ensures an unparalleled living environment for its residents.

Read more at Abu Dhabi’s latest project: Villas on green hills, beaches on Hudayriyat Island (zawya.com)

Rent-free months and other benefits reduce for tenants amid high occupancy (24^th March)

Dubai’s rental market is witnessing a shift as landlords increasingly offer rent-free months and grace periods, driven by robust occupancy rates fueled by population growth. However, real estate executives note that while landlords are open to splitting rent across multiple checks, this often leads to higher rental costs for tenants. With a shortage of housing in the emirate, the rental market is skewed in favor of landlords, making it challenging for renters to find accommodation. As landlords prioritize attracting long-term tenants and maintaining property standards, traditional incentives like free rent may become less common. Some landlords are also partnering with third-party platforms to offer renters more flexibility by paying rent upfront and collecting it monthly.

Read more at Dubai: Rent-free months, other incentives dwindle for tenants amid high occupancy (zawya.com)

Saudi Ministry of Justice enhances real estate transparency with new platform feature (19^th March)

The Saudi Ministry of Justice (MoJ) has introduced the “Real Estate Data” feature on its Real Estate Market platform, providing clients with a detailed record of all notarization activities associated with a property. The feature allows clients to explore comprehensive real estate data for over 4 Mn property title deeds, including transaction history, mortgage-related operations, and previous sale prices. The Ministry is committed to transparency and aims to enhance the platform’s services, offering efficient tools to regulate and streamline real estate transactions. The platform also fosters investment opportunities and broadens the investor base.

Read more at Saudi: MoJ unveils ‘real estate data’ feature for over 4mln title deeds (zawya.com)

Alandalus Property company inks SAR 114.33 Million lease agreement (21^st March)

Alandalus Property Company has finalized a lease agreement worth SAR 114.33 Mn for the Yasmine Alandalus office building in Riyadh, with the rental period scheduled to commence four months after the signing of handover minutes. Additionally, the company’s board has sanctioned the appointment of a new Chairman and Vice Chairman. The Tadawul-listed company experienced a significant year-on-year decrease in net profit for 2023, declining by 45.45% to SAR 36.42 Mn from SAR 66.77 Mn.

Read more at Saudi: Alandalus Property inks $30.4mln lease agreement for 5 years (zawya.com)