Dubai's real estate market has demonstrated remarkable growth in the first quarter of 2024

highlighted by the latest report from Allsopp & Allsopp Real Estate. The report indicates that the market has experienced a 19.3% increase in sales transactions from the same period last year, totaling 33,346 transactions. The overall sales value has also surged by 23.9%, reaching an impressive AED85 billion.

 

Apartments have emerged as the most popular property type among buyers, accounting for 61% of all transactions with 27,357 sales. Villas and townhouses also showed strong performance, contributing to 18% of the market's sales value with 5,989 transactions. Property prices in Dubai have soared to a new high of AED1,325 per square foot, marking a 7.4% increase from the previous peak in September 2014.

 

Off-plan properties dominated the sales landscape, accounting for 57% of the total sales volume and AED42.3 billion in value. The secondary market was also robust, making up 43% of sales volume with transactions worth AED43.4 billion. The sales team at Allsopp & Allsopp noted a 24% increase in transaction activity compared to the fourth quarter of 2023.

 

British nationals were the leading buyers this quarter, comprising 23% of all sales. The preference for modern villas and townhouses was particularly noted. Interestingly, financing options were more popular than cash purchases, with 53% of buyers opting for loans.

 

The more affordable properties, priced below AED3 million, accounted for 80% of all transactions, indicating strong demand from first-time buyers for reasonably priced and off-plan properties. Property prices showed stable growth, with low single-digit increases expected to continue into the first half of the year.

 

The lettings market has also seen significant growth, with a 26% month-over-month increase in viewings and a remarkable 126% year-on-year increase. Landlords responded to this demand by increasing property listings by 25% compared to the previous quarter. Letting prices have seen an average increase of 11% from the fourth quarter of 2023, suggesting a healthy market and promising potential for higher returns for property investors.

Dubai's real estate market has demonstrated remarkable growth in the first quarter of 2024, as highlighted by the latest report from Allsopp & Allsopp Real Estate. The report indicates that the market has experienced a 19.3% increase in sales transactions from the same period last year, totaling 33,346 transactions. The overall sales value has also surged by 23.9%, reaching an impressive AED85 billion.

 

Apartments have emerged as the most popular property type among buyers, accounting for 61% of all transactions with 27,357 sales. Villas and townhouses also showed strong performance, contributing to 18% of the market's sales value with 5,989 transactions. Property prices in Dubai have soared to a new high of AED1,325 per square foot, marking a 7.4% increase from the previous peak in September 2014.

 

Off-plan properties dominated the sales landscape, accounting for 57% of the total sales volume and AED42.3 billion in value. The secondary market was also robust, making up 43% of sales volume with transactions worth AED43.4 billion. The sales team at Allsopp & Allsopp noted a 24% increase in transaction activity compared to the fourth quarter of 2023.

 

British nationals were the leading buyers this quarter, comprising 23% of all sales. The preference for modern villas and townhouses was particularly noted. Interestingly, financing options were more popular than cash purchases, with 53% of buyers opting for loans.

 

The more affordable properties, priced below AED3 million, accounted for 80% of all transactions, indicating strong demand from first-time buyers for reasonably priced and off-plan properties. Property prices showed stable growth, with low single-digit increases expected to continue into the first half of the year.

 

The lettings market has also seen significant growth, with a 26% month-over-month increase in viewings and a remarkable 126% year-on-year increase. Landlords responded to this demand by increasing property listings by 25% compared to the previous quarter. Letting prices have seen an average increase of 11% from the fourth quarter of 2023, suggesting a healthy market and promising potential for higher returns for property investors.

 

Adding to the vibrancy of Dubai's real estate sector is the Shaikhani Group, which has been making substantial contributions to the market's expansion. The Group is known for its innovative projects and has recently launched several new developments aimed at bolstering the residential and commercial sectors. These initiatives are designed to meet the growing demand for high-quality living and business spaces, further stimulating the city's economic growth. The Shaikhani Group's commitment to excellence and customer satisfaction continues to make it a key player in shaping Dubai's real estate landscape.

Surging Demand and Tight Supply Propel Dubai's Luxury Property Market to New Heights

 

Certainly! Dubai's luxury real estate market has demonstrated remarkable growth, particularly in its prime residential sector, where properties valued over $10 million are attracting considerable interest from international buyers. This influx is fueled by Dubai's reputation as a cosmopolitan hub with strategic policies that enhance its attractiveness to wealthy expatriates and investors.

In detail, during the past year, prime locations such as The Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills witnessed a significant appreciation in property values, with an increase of over 26% in prices. The Palm Jumeirah alone accounted for over a third of the total transactions in the first quarter of the year, reflecting its status as a premier residential area. This surge is part of a broader trend where Dubai’s luxury market has consistently outperformed other global cities, including London and New York.

Knight Frank’s report provides insight into the dynamics driving this market. For instance, the total sales value of luxury homes in the first quarter of this year was $1.73 billion, marking a 6% increase compared to the same period last year. The report emphasizes that despite the rising prices, Dubai remains an economically attractive location for luxury real estate compared to other major cities. Here, $1 million can secure approximately 980 square feet of prime residential space, which is significantly more than what the same amount would buy in cities like New York or London.

The market's robustness is partly due to Dubai’s strategic advantages such as excellent global connectivity, favorable interest rates, and policies encouraging long-term residency. These factors have not only sustained demand but have also led to a tightening in supply. Over the past year, the availability of homes priced above $10 million has decreased by 59%, creating a seller's market with only 864 such homes available citywide.

Despite these favorable conditions, the report also cautions about potential risks that could impact the market. Factors such as a global economic slowdown or escalating regional tensions could influence local economic conditions and, by extension, the real estate market. These could lead to increased oil prices, fueling inflation and higher interest rates, which might dampen the demand for luxury properties.

Looking forward, while the luxury market is expected to grow by a more moderate 5% this year, specific areas like Dubai Hills Estate are emerging as highly desirable neighborhoods. This area is attracting domestic buyers due to its proximity to major business districts, availability of international schools, and abundant green spaces, leading to an 11% price increase over the last 12 months.

The sustained interest in off-plan luxury properties, like those in Palm Jumeirah’s recent high-end developments, also highlights the ongoing appeal of Dubai’s real estate market. This is indicative of the city's ability to continue drawing the global elite, thereby cementing its status as a major destination for luxury real estate investments.

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The Rise of Ready Properties and Shaikhani Group's Pivotal Role in the UAE's Real Estate Resurgence

 

In the first quarter of 2024, the United Arab Emirates (UAE) witnessed a significant shift in real estate dynamics, with a marked increase in the demand for ready properties as more tenants opted for home ownership amid rising rental prices. This trend signifies a departure from the previous year's emphasis on off-plan transactions, highlighting a robust demand for existing projects across Dubai and Abu Dhabi. According to Property Finder, this change is driven by a steady increase in rents over the past three years, propelled by high demand from a growing population. Consequently, UAE residents are increasingly purchasing real estate in Dubai and Abu Dhabi to reduce their monthly expenses and potentially enhance the value of their investments over time. The first quarter of 2024 emerged as a promising growth phase, indicating a diversified demand with positive implications for the future.

The Shaikhani Group, a multi-billion dollar international conglomerate with a strong presence in real estate development among other sectors, is poised to play a significant role in addressing this shifting market demand. With over three decades of experience in real estate development and having delivered over 30,000 units, the group's extensive portfolio and commitment to excellence position it as a key player in catering to the increasing demand for ready properties. The Shaikhani Group's strategy focuses on creating value through high-quality real estate projects, leveraging its extensive experience and market insights to meet the evolving needs of the UAE's real estate market.

The shift towards ready properties is evident in the transaction data. Dubai's existing/ready market recorded nearly 19,600 transactions in the first quarter of 2024, a substantial increase from the previous year. This trend reflects a growing preference among buyers for immediate occupancy options, driven by the rising cost of living and the desire for stable investments. Similarly, Abu Dhabi witnessed a 30% increase in residential transactions for ready properties, underscoring the widespread appeal of owning over renting in the current economic climate. The Shaikhani Group's ongoing and upcoming projects are likely to benefit from this trend, offering potential buyers and investors high-quality, ready-to-move-in properties that align with their preferences for security and value appreciation.