Dubai Real Estate Market Sets New Records in 2023 with the Shaikhani Group at the Helm

 

Dubai's real estate sector has experienced a remarkable surge in 2023, marked by unprecedented highs in both volume and value of sales transactions. The landscape, shaped by various factors, including rising rents and a desire for long-term stability, witnessed average prices surpassing the previous peak set in September 2014. Despite a slight dip in off-plan transactions, the market demonstrated resilience throughout the final quarter.

 

A significant shift towards domestic demand was noted, with end users accounting for an increased share of buyers, rising from 38% to 44%. This trend signals the maturation of the market and bodes well for sustained price stability in the years ahead.

 

One of the driving forces behind this surge has been the Shaikhani Group, a key player in Dubai's real estate scene. Privately held by Mr. Mohammad Abubakar Shaikhani, the group boasts over three decades of experience in property development and asset management. The Shaikhani Group has successfully partnered with a diverse array of real estate developers and stakeholders, identifying, developing, and executing projects that have contributed to the market's evolution.

 

In 2023, Dubai experienced a population increase exceeding 100,000, reinforcing its status as a global destination for citizens seeking a safe haven, unparalleled lifestyle, and a favorable business and tax environment. However, the supply-demand imbalance, with new property handovers relatively unchanged from the previous year, has led to increased pressure on rents. Betterhomes reported a notable 24% increase in average rental prices, with more tenants opting for lease renewals.

 

The luxury real estate market in Dubai, in particular, witnessed an unprecedented year, driven by an influx of millionaires worldwide. The UAE, ranking above the United States and second only to Australia in wealth migration, attracted high-net-worth individuals, surpassing European tax havens in 2023. The success of developments like Palm Jebel Ali and Palm Jumeirah highlighted the enduring popularity of waterfront residences, while branded residences continued to be in demand.

 

Looking ahead to 2024, the Shaikhani Group anticipates a growth in new property handovers, aligning with the continuous influx of expats to Dubai. While a slowdown in the rapid price increases observed since 2019 is expected, there's a forecast for continued growth at more sustainable levels. This reflects the evolving and maturing nature of Dubai's real estate market.

 

the Shaikhani Group stands as a pivotal force in Dubai's real estate success story, embodying a commitment to identifying growth opportunities and contributing to the city's ongoing transformation. As a leader in project ideation and development, the group's diversified portfolio and forward-looking approach position it as a key player in shaping Dubai's real estate landscape in the years to come.