Highlights of the week | 1st January – 7th January 2024
Anticipated drop in UAE mortgage rates to drive homeownership in 2024 (1st January)
Real estate analysts predict that a potential drop of up to 100 basis points in mortgage interest rates in the UAE in 2024 will encourage property buyers, particularly end-users. Lower rates are expected to stimulate demand, increase home sales, and potentially prompt renters to transition to homeownership. While cash transactions dominate in Dubai, the anticipated reduction in mortgage rates might lead to more buyers opting for mortgages, especially in Abu Dhabi. The drop in rates is seen as beneficial for end-users, investors, and the overall real estate market, particularly in the affordable housing segment. A few trends emerging in the mortgage market are Tech-driven Innovation, PropTech and AI-powered Solutions, Blockchain Integration, Sharia-compliant mortgages, First-time buyer programs and more.
Read more at UAE: More property buyers to opt for mortgages as interest rates set to drop in 2024 (zawya.com)
Dubai anticipates global leadership in luxury Real Estate by 2024 (1st January)
Dubai aims to become the world’s leading destination for luxury real estate by 2024, outpacing other global cities like New York and London. The city has seen increased demand for high-end, branded residences, with expectations to strengthen its position in the luxury real estate market. In 2023, Dubai is projected to surpass other cities in luxury property sales, with a focus on ultra-luxury properties. The market has become more stable, boosting investor confidence and attracting a diverse global investor base. Knight Frank’s Fall 2023 report confirms Dubai’s trend of consecutive quarterly rises in residential property values, with a strategic shift towards informed investments.
Read more at Dubai is expected to consolidate its position in the global luxury real estate market by 2024 (dubaiweek.ae)
Arada acquires prime land plot in Dubai’s Zabeel 2 for AED 600 Million (2nd January)
Arada, has acquired a prime land plot in Zabeel 2, adjacent to Dubai International Financial Centre (DIFC), for AED 600 Mn. The 138,466 Sqft plot will be developed into a 50-floor luxury residential tower featuring 400 premium apartments with views of Burj Khalifa and the Dubai skyline. The purchase, from Rital Properties, a subsidiary of Emirates NBD, strengthens Arada’s position in the high-end property market. The strategic location between DIFC and Downtown Dubai underscores Arada’s commitment to delivering exceptional projects in the city. Design work has already commenced, and full project details will be revealed in the coming year.
Read more at Arada signals further expansion into Dubai property market with $163.3mln Zabeel 2 plot (zawya.com)
Dubai Real Estate rents expected to surge by 20% in 2024, continuing upward trajectory (2nd January)
Property experts at Colife predict a significant uptrend in Dubai’s real estate rental market, with a 30% growth by the end of 2023. The upward trajectory is anticipated to persist in 2024, driven by a 20% jump in short-term rentals and a 15% rise in long-term ones. The surge in rental costs is directly linked to a 15% increase in apartment prices from mid-2022 to mid- 2023, accompanied by a notable rise in property transactions. The continuous influx of professionals to Dubai for career opportunities and the city’s planned population growth contribute to the sustained demand for residential properties, suggesting no slowdown in the rising rental trend for 2024.
Read more at Dubai real estate rents to climb 20% this year, investors eye returns: analyst – Arabian Business
Dubai’s Burj Khalifa records 52% decline in available homes in 2023 (3rd January)
Knight Frank’s analysis reveals a 52% decline in homes available for sale in Dubai’s Burj Khalifa in 2023, indicating increased long-term investments and genuine end-user interest. Despite the drop, total sales in the iconic tower rose by 22% to 117 transactions. The Burj Khalifa accounted for 7% of all sales in Downtown Dubai, totaling AED 1.06 Bn. The tower’s strong demand resulted in a 38% increase in average city-wide prices since March 2021, outperforming the rest of the city with a 55.4% price growth over the same period. Knight Frank’s analysis indicates Dubai’s emergence as a second-home for many.
Read more at Dubai’s Burj Khalifa marks 14th anniversary with 52% less homes available for sale in 2023 (zawya.com)
Mered launches flagship project “Iconic” in Dubai (3rd January)
International real estate developer Mered has launched its flagship project in the UAE, “Iconic,” a residential tower located in Dubai Internet City. Developed in collaboration with Italian design house Pininfarina, the project features 311 premium ergonomic apartments. The tower includes amenities such as diverse retail outlets, eateries, a gym, private lounge, children’s play area, and an infinity pool. Mered aims to redefine and elevate the standard of urban living with this project, focusing on cutting-edge technology and visionary design elements. Iconic is set to become a landmark in Dubai’s skyline.
Read more at Mered unveils 311-unit premium residential development in Dubai (zawya.com)
Dubai’s largest penthouse has been listed for AED 600 Million (3rd January)
Emerald Palace Group has listed Dubai’s largest penthouse, the Super Penthouse R1, for over AED 600 Mn. Spanning 77,707 Sqft over the top three levels and rooftop of Raffles The Palm Dubai Residences, it sets a new record for the city’s largest private residence. The penthouse includes eight bedrooms, a private elevator, grand dining and sitting areas, gym, spa, outdoor swimming pool, basketball court, and a unique cigar lounge. The luxury property market in Dubai has seen strong demand, with prices hitting all-time highs in 2023.
Read more at Dubai’s largest penthouse, with mini golf, cinema, 10 parking lots, goes on sale for$163.48mln (zawya.com)
Dubai Real Estate agents thrive as the market attracts global investors (3rd January)
The booming real estate market in Dubai is leading to substantial earnings for real estate agents, with some reporting commissions exceeding AED 150k per transaction. As the city continues to attract global investors, real estate agents are capitalizing on the surge in transactions. Annual incomes for savvy agents are expected to see a significant jump in 2024, reaching between AED 400k and AED 500k. The adaptability, negotiation skills, and market insights of real estate agents play a crucial role in shaping Dubai’s story as a global real estate hub. The city’s record-breaking real estate transactions in 2023 contribute to agents’ earnings as Dubai cements its position in the global real estate landscape, real estate professionals play a vital role in the industry’s success.
Read more at Dubai real estate: Agents reporting over AED150,000 in commission per deal as property
market booms – Arabian Business
Azizi Developments finishes strong in 2023 with a 16.5% growth in sales (3rd January)
Azizi Developments concludes 2023 with a remarkable 16.5% increase in sales compared to the year prior, having completed 7,699 units and sold 8,834 homes. The developer is set to deliver 6,069 residences in Dubai in 2024, including projects in Riviera, Azizi Vista, Pearl, and Creek Views II. In 2023, Azizi achieved significant milestones, received industry accolades, and unveiled an ambitious AED 60 Bn hospitality investment plan featuring 50 luxury hotels and resorts. Farhad Azizi, CEO, expressed gratitude to stakeholders and emphasized their commitment to enhancing the UAE’s real estate sector.
Read more at Azizi Developments announces 8,834 units sold in 2023 with 6,069 scheduled completions in 2024 (zawya.com)
Ariston Middle East prioritizes sustainable solutions post-COP28 for UAE (3rd January)
the aftermath of COP28, Ariston Middle East, a global leader in sustainable hot water and heating solutions, is set to expand its portfolio of eco-friendly offerings. With sustainability at the core of its business strategy, the company aims to align with the UAE’s new regulatory requirements, emphasizing green and low-power features in its water heating solutions. Ariston’s focus on heat pumps and solar-powered systems has gained traction in recent UAE projects, contributing to substantial energy savings for hotels and communities. The company actively collaborates with local entities to promote energy efficiency and environmental awareness.
Read more at Ariston commits to boosting sustainability solutions (tradearabia.com)
ZāZEN Properties urges sustainable construction for affordable housing in Dubai post-COP28 (3rd January)
Sustainable property developer ZāZEN Properties advocates increased sustainable construction efforts post-COP28 to meet the growing demand for affordable housing in Dubai. With the city’s population exceeding 3.65 Mn and aiming for 8 Mn by 2040, the mid- market segment falls short, emphasizing the need for quality, sustainable housing. ZāZEN’s COO, Madhav Dhar, stresses the importance of aligning construction with the Dubai 2040 Urban Masterplan’s goals and supporting environmental initiatives. ZāZEN Gardens in Al Furjan is set to become the first LEED Gold-certified and Well-Being integrated residential development in April 2024.
Read more at ZaZ̄ EN Properties shares future real estate market industry insights (zawya.com)
Requirements to becoming a Real Estate agent in Dubai (4th January)
As Dubai’s real estate market continues to thrive, many individuals aspire to join the sector as real estate agents. The process involves obtaining a residency visa, enrolling in a certified four- day course by the Dubai Real Estate Institute (DREI), covering various market aspects. The course, accredited by RERA and DLD, equips candidates with essential skills. Following the training, candidates must take the RERA Exam, a written assessment of real estate principles. Upon passing, candidates submit required documents to the Economic Department for a Broker’s License, a crucial step requiring regular renewal. The demand for real estate agents in Dubai is on the rise, attracting individuals seeking opportunities in the dynamic property market.
Read more at Dubai real estate: What are the requirements to become an agent – Arabian Business
Damac has awarded its main works contracts for Damac Hills 2 project (4th January)
DAMAC Properties, a leading luxury real estate developer in the UAE, has awarded the main works package for developments in DAMAC Hills 2. China Tiesiju Civil Engineering Group secured over AED 210 Mn for 439 villas and townhouses in the Natura cluster. Additionally, Infra Nets Contracting was awarded close to AED 7 Mn for roads and infrastructure work in DAMAC Hills 2. The Farmhouses, Verona, Natura, and Violet clusters in DAMAC Hills 2 offer residents’ access to various amenities, including sports facilities, green spaces, a fishing lake, and more.
Read more at DAMAC Properties awards main works contracts worth around AED 300mln (zawya.com)
Dubai sets up a new company for parking spaces management (4th January)
Dubai’s ruler, HH Sheikh Mohammed bin Rashid Al Maktoum, has issued a law establishing Parkin, a new company with autonomy in financial, administrative, and legal matters. Parkin’s 99-year duration, renewable for a similar period, will focus on creating, planning, designing, operating, and managing public parking spaces, along with issuing permits, reserving parking spaces, and managing private parking spaces. Parkin aims to streamline parking-related operations and enhance efficiency in the emirate.
Read more at Dubai sets up new company for parking spaces management (tradearabia.com)
Despite global economic uncertainties, Dubai’s property market is projected to grow in 2024 (5th January)
Dubai’s real estate market, poised to grow by 5% – 7% in 2024, continuing its upward trajectory. With demand surpassing supply, industry experts assert there’s no specific ideal month or season for property purchases. Economic factors such as interest rates, infrastructure developments, and seasonality are crucial considerations. Trends include a potential resurgence of Chinese buyers, Expo City projects attracting interest, a secondary market boom in areas like Arabian Ranches, and demand shifting to affordable yet upscale developments in Jumeirah Village Circle and Arjan. The limited inventory is driving rent hikes of 10% – 20%, making it an investor and landlord market with average returns exceeding 6.5%. Off-plan projects maintain momentum, reflecting residents’ long-term commitment to Dubai. The commercial sector is also anticipated to experience substantial growth in 2024.
Read more at Dubai real estate: When is the best time to buy property in 2024? – Arabian Business
Dubai Real Estate transactions reach AED 5.8 Billion in a week (5th January)
According to the Dubai Land Department (DLD), a total of 1,721 real estate and property transactions, valued at AED 5.8 Bn, were conducted during the week ending on January 5th. The transactions included 114 plots sold for AED 1.36 Bn, and 1,183 apartments and villas sold for AED 3.13 Bn. The top three transactions were land sales in Al Thanyah Fifth (AED
268.33 Mn), Warsan Fourth (AED 113.9 Mn), and Palm Jabal Ali (AED 65.26 Mn). Madinat Hind 4 recorded the most transactions during the week (18 sales transactions worth AED 20.57 Mn), followed by Palm Jabal Ali and Saih Shuaib 1. The sum of mortgaged properties amounted to AED 779.4 Mn while 98 properties were granted between first-degree relatives worth AED 617 Mn for the week.
Read more at Dubai records $1.5bln in weekly real estate transactions (zawya.com)
Disclaimer: This document has been prepared by Aaronz and Co Real Estate LLC (“Aaronz”) exclusively for information purposes only. While we have made every attempt to ensure that the information contained in this newsletter is correct and has been obtained from reliable sources, Aaronz is not responsible for any errors or omissions, or for the results obtained from the use of this newsletter. Information in this newsletter has been edited wherever necessary, with no guarantee of completeness, accuracy, timelines or of any results obtained from use of the information. In no event will Aaronz, its related partnerships or corporations, or the partners, agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this newsletter or for any consequential, special or similar damages caused. Should you require further information on Dubai’s real estate market, book a free consultation with our experts.
