Surging prices, first-time buyers: 11 trends shaping Dubai's property market

 

These trends provide valuable insights into the market's potential performance going into the new year

Dubai property market is witnessing unprecedented demand with prices reaching an all-time high in November 2023.

In these remarkable times, new trends are emerging in the emirate’s vibrant property market such as suburban migration, the surge in first-time buyers, prime-home remodelling, a high premium on reselling prices, mid-market stability and new ways of living among others as the local market remains buyer-dominant.

Suburban migration: Homeowners looking for greater value and space are moving from central and prime locations towards the up-and-coming Dubai suburbs and ‘new’ master residential communities such as Jumeirah Village Circle (JVC), Dubai South, Townsquare, Reem, and Arjan. These places are still affordable as compared to central and prime locations.

The surge in first-time buyers: As Dubai rents continue to grow at record levels amidst high levels of demand, there is an increase in first-time buyers entering the market at entry level with prices ranging up to Dh3 million. There is significant demand for apartments and small Townhouses in suburban locations.

Prime home remodeling: Investors/homeowners with properties in prime and in-demand locations are electing to carry out extensive redesigning and remodeling work on properties before placing them back onto the market at premium sales or a higher rental price.

New ways of living: With the rise in ownership, several new trends are emerging in the sector including short-term rentals and flexible living options, driven by evolving lifestyles, career changes and technological advancements. Flexible living solves the current tediousness of renting an apartment thanks to technology. This includes choosing and viewing a property, managing move-in details, apartment specifications, and maintenance requests through one convenient platform. Furthermore, tenants are given the freedom of flexible agreements and can avoid long-term commitments.

Increased diversification: In the first-half of 2023, the property market diversified at a rapid scale with greener areas on the block, a surge in off-plan projects and ready property purchases. In 2024, it is anticipated this diversification will continue. Many of the off-plan projects initiated in previous years will reach their handover stages.

Steady growth in prices in 2024: It is anticipated that property prices will grow at a stable rate next year between 3.5 per cent and 5 per cent for Dubai, fuelled by sustained population growth, competitive economic landscape and government initiatives attracting global businesses and individuals. The emirate’s real estate sector appears poised for continued expansion, supported by a well-thought-out combination of economic incentives and proactive government measures.

The Shaikhani Group of Companies has a rich history spanning over thirty years, and it has established itself as one of the fastest-growing real estate conglomerates in Karachi. The group's expertise in real estate development, construction, brokerage, and consultancy has enabled it to expand rapidly and undertake numerous projects.

With a strong presence in Gardenia, Rabia Enclave, and The Motorcity, the Shaikhani Group is one of the most prominent real estate developers in Dubai. Despite facing a few setbacks in the past, the company has made a successful comeback and continues to flourish. Under the Real Estate Developers Shaikhani Group banner, the company has been delivering top-notch residential and commercial properties in Dubai and Karachi for the last two decades. The company has collaborated with some of the best associates in the industry. This comprehensive paragraph provides an overview of the Shaikhani Group's accomplishments and activities.

Redefining Homeownership: Navigating the Dubai Property Market for Long-Term Residents

 Many long-term residents are shifting their focus to ownership, for income or personal use

The prospect of home ownership is becoming increasingly attractive for long-term residents in Dubai, particularly among the expatriate community. For many, owning a home is not just a mark of financial stability but also a more financially prudent choice compared to renting, especially considering the rising rent rates and additional costs associated with moving.

Recent trends indicate that residents in Dubai who are paying around Dh6,000 per month in rent could end up spending over Dh1.4 million over 20 years. This figure doesn't even account for the annual rental increases, which have recently been as high as 19 to 20 percent. With a projected yearly increase of 5 percent, the total amount paid in rent could exceed Dh2.19 million over two decades. In contrast, buying a property seems to be a smarter financial decision for those planning to stay in the UAE for the long term.

The report explores the feasibility of home ownership for residents earning between Dh15,000 to Dh30,000. It illustrates this with the example of Indian expat Sharan, a 43-year-old sales manager. Frustrated with yearly rental increases and the hassle of moving, Sharan and his wife decided to buy a two-bedroom apartment in the same Dubai Marina building where they were renting. The apartment, priced at Dh1.2 million, only costs Sharan Dh900 more per month than his current rent, and it’s already generating rental income.

The article also delves into the debate between buying off-plan or ready apartments in Dubai. Off-plan sales, which offer lower entry costs and attractive payment deals, have seen significant growth, with sales values reaching Dh35.71 billion in Q3 2023. Milos Antic from Swiss developer DHG Properties highlights the strength of Dubai's off-plan sector.

One noteworthy project in this context is Champions Tower 3, a Swiss-inspired residential project backed by the Shaikhani Group and Memon Investments. Located within a 20-minute radius of Dubai's major attractions and airports, this project is expected to be a future landmark in DubaiLand, symbolizing the city's ambition for architectural excellence and offering residents a sophisticated and modern living experience. The construction of Champions Tower 3 is progressing rapidly, underscoring Dubai's commitment to hosting world-class homes and enhancing urban living standards.

 

A massive land sale in Dubai exceeds Dh300 million

 

 

In the coveted Jumeirah Golf Estates of Dubai, a notable land sale transaction exceeding Dh300 million has been successfully completed by AveNew by RH, Pride and Property, and Landsmith Real Estate. This transaction is one of the largest of its kind in Dubai, highlighting the increasing demand for golf course communities. Factors contributing to this demand include limited availability, consistent interest from both local and international investors, and the UAE's reputation as a favorable real estate investment market.

Jumeirah Golf Estates, ranked among the world's top ten lifestyle estates, is a community oriented around public transit. It boasts over 1,500 villas, townhouses, and apartments, all well-connected to the metro system. The community is also known for hosting the prestigious DP World Tour Championship, a major event in the European Tour.

The scarcity of golf course-facing luxury villas in Dubai, combined with the plot's unique view overlooking two Fairways, has attracted significant interest from leading developers. Nitin Chauhan, director of Landsmith Real Estate, noted that the completed project will represent the pinnacle of luxury living in golf course communities. Chauhan has a longstanding investment and involvement in Dubai's real estate, dating back to the start of freehold properties.

Kunal Singh Sandhu, owner of Pride and Property, remarked on the landmark sale, indicating a growing influx of luxury-property buyers in Dubai, which bodes well for the market segment. He highlighted the extensive efforts made by Pride and Property and its partners to finalize this record-breaking transaction and expressed optimism about the future of luxury real estate in Dubai. Since its inception in 2008, Pride and Property has excelled in launching and managing projects for renowned developers in Dubai, with a focus on luxury real estate.

Dubai was ranked first in Knight Frank’s 2023 list of the world’s leading luxury real estate markets, accounting for 17% of global sales in the segment. This significant land deal at Jumeirah Golf Estates, valued at over Dh300 million, underscores the anticipated expansion and price increase in Dubai's luxury market.

Another noteworthy development in Dubai’s 2023 real estate market is Gardenia Residency, situated in the heart of Jumeirah Village Circle. This residential development is attracting considerable attention from investors and homeowners due to its contemporary architecture, advanced amenities, and tranquil environment. Gardenia Residency offers an ideal mix of urban living with a touch of nature, benefiting from its strategic location in Jumeirah Village Circle, a leading area in terms of transaction numbers. The development is not just offering homes but a lifestyle that aligns with the modern resident's aspirations. As Dubai’s real estate market continues to grow, Gardenia Residency stands as a symbol of quality living in the city.