Several international real estate reports indicated that the luxury real estate market in Dubai is anticipating the launch of new projects during the current season, while home sales in Dubai continue to rise since the beginning of 2024, benefiting from the boom it witnessed during the past year, when transactions reached their highest levels ever. . The rental market in Dubai is also witnessing a noticeable shift, as a rise in prices has been observed, mainly due to high occupancy rates, supported by the population increase.
Reports expect housing activity in Dubai to return to more normal levels in 2024, with price growth ranging between 4% and 5.9%.
Rents have also continuously increased by double digits in most areas of Dubai over the past few years, due to high demand resulting from population growth.
Jacob Bramsley, director of leasing at Better Homes, confirms that the high occupancy rates have relieved landlords of great pressure to provide such incentives, pointing out that we have observed many contracts with several companies, which is what we usually find more flexibility from our property owners. “Compared to incentives or prices.”
“It is rare at the moment to see incentives such as a free month of rent or a grace period that allows a tenant to move into a property a little early without paying rent,” Bramsley adds. The emirate’s population reached 3.65 million people in 2023, an increase of 100,000 people over 2022, due to the influx of foreign workers, professionals and investors in the post-pandemic period.
Paul Kelly, director of operations at the Allsopp & Allsopp Group, points out that the incentives are no longer as numerous as they were in 2020, for example, explaining that the owners do not need them, adding: “We can all see how busy Dubai is at the present time. “We are all aware of the population increase and record numbers of visitors, it is not a market where owners need to offer an incentive.”
General Manager of Real Estate at Hospi Real Estate, Alois Kojendran, agrees that incentives such as free months of rent are no longer offered now, pointing out that population growth was the main driver of demand, which led to a shortage of available homes, so the landlord no longer needs to provide incentives. And creating a market in his favor.
He added: “The scenario has become completely different compared to two to three years ago, and we have recently witnessed a continued rise in occupancy rates despite the rise in rental prices.”
New projects
On the other hand, according to the latest reports of Mansion Global, which specializes in the luxury real estate sector, the Emirate of Dubai is considered the most exciting luxury market in the world, with development projects that will launch their units to the market this season, which include stand-alone villas and towers on the waterfront. With long lists of units under launch, as home sales in Dubai continue to rise at the beginning of 2024, benefiting from the boom it witnessed over the past year, when transaction levels reached their highest levels ever. In January, the emirate recorded a record number in sales worth 35.4 Billion Dirhams, or about 9.6 Billion Dollars, an increase of 27% over the same period in 2023. According to the Dubai Land Department, in the last quarter, the emirate outperformed all cities in the world in residential property sales worth $10 million and above.
The General Manager of Luxury Property Company, Mark Richards, points out that the emirate witnessed some very exciting developments to start the year, as interest and mortgage rates decline after some intense increases, which is good news for many potential buyers, noting that those who are thinking about investing in real estate Luxury customers now have the opportunity to move to the next level of luxury, with numerous financing options available.
According to Mansion Global, Dubai witnessed the largest growth in luxury home prices among 30 global cities in the year 2023, as values rose by 17.4%. However, price increases have begun to subside now, making the city more attractive to potential home buyers.
British real estate company Savills expects housing activity in Dubai to return to more normal levels in 2024, with price growth ranging between 4% and 5.9%, which is in line with real estate experts’ expectations that the Dubai market will witness price stability in the short term to Average, after the significant increase witnessed in recent years.
Lux Habitat CEO, Oriol Font expects that by the end of 2024 or the beginning of 2025, the market will witness a moderation in growth levels, or even a possible correction in certain areas or types of real estate, adding: “Dubai is ready for further development as a residential destination.” “It is prominent for high-net-worth individuals, due to the lifestyle and advanced infrastructure that the emirate provides, and it has the additional advantage of being an attractive tax haven for many foreign investors.”
The site reviewed 5 luxury projects whose sales have been launched since the beginning of this year, the most prominent of which is the Altissima complex by Al Barari Dubai, which is located on Sheikh Mohammed bin Zayed Road, Dubailand, where the resort consists of 23 villas with 7 bedrooms that come with at least eight bathrooms. . Then came the “Mercedes-Benz Places” project, which is located on Al-Asayel Street in the center of the emirate, and is the first residence bearing the Mercedes-Benz brand in the world. It includes 65 floors with 150 apartments and penthouses, and is expected to be completed in The year is 2026.
The site also reviewed “Harrisoni La Mer Villas”, located on La Mer Beach in Jumeirah, which were almost completely sold out at the launch, and there were only two villas on offer when the project was launched last January.
According to Mansion Global, the name “Harrison” came from a rare type of coral that is found only in the Arabian Gulf, as it expresses that each villa is unique, hidden from outsiders, and accessible only to future residents and their guests.
The site also presented, in its lengthy report, “Amara Twin Villas,” which is located on Hessa Street in Dubai Sports City. The site explains that it is the newest addition to the Tilal Al Ghaf community, which will include 6,500 freehold apartments and townhouses upon its planned completion in 2026.
The site lastly reviewed “Villa Vento” by Omniyat in Marassi Bay in Business Bay in Dubai, which will include 92 residential units on the waterfront, ranging from two- to four-bedroom apartments. It will also be adjacent to the “Omniyat” project “Dorchester Villas Group,” which It was launched last June.