According to real estate services firm Chestertons, Dubai’s response to the pandemic, overall quality of life and recent visa reforms supported near-record transactions during the third quarter. But that’s only half the story. The developers of Cityscape are spending huge amounts of money to sate an insatiable appetite for the real estate sector in the UAE.
The results revealed in the latest report: UAE Market Report for the third quarter of 2021 that the total value of residential transactions in Dubai rose by 10% on a quarterly basis to 34.11 billion dirhams ($9.3 billion), up from 31.02 billion dirhams ($8.45 billion). ) in Q2. Completed property sales accounted for 20.63 billion dirhams ($5.62 billion) of the total value, while off-plan sales increased in terms of value on a quarterly basis by 48%, to reach 13.48 billion dirhams ($3.67 billion), with developers intensifying their marketing activities before Expo 2020.
Chris Hobden, Head of Strategy Consulting, Chestertons MENA, said: “We have seen significant growth in sales in the luxury segment, which we define as properties priced at AED 30 million ($8.2 million) and above, reflecting Dubai’s clear appeal of high net worth. Worthy Buyers Internationally. “
The total value of luxury residential sales reached two billion dirhams ($545 million) during the third quarter, bringing the total value of luxury sales to 4.6 billion dirhams ($1.25 billion) during the first three quarters of the year. This compares to 919 million dirhams ($250 million) and 1.13 billion dirhams ($308 million) during the same period in 2020 and 2019, respectively.
Strong demand continued in the third quarter for the villa sales sector in Dubai. The influx of new residents and continued demand from settled expats increased market-wide villa prices by 6.4% q-o-q, supporting a 17.1% rise above the Q3 2020 average.
Palm Jumeirah, Arabian Ranches and Jumeirah Park saw the highest quarterly increases, with prices up 8.8%, 8.2% and 7.7%, respectively. Prices in Palm Jumeirah averaged Dhs2,225 per square foot ($606), with Arabian Ranches as high as Dhs920 per square foot ($250) and prices in Jumeirah Park as high as Dhs840 per square foot ($229).
Average values in the Lakes, Meadows/Springs, and Furjan regions rose 6.6%, 6.2% and 5.7%, respectively, on a quarterly basis. Damac Hills and Emirates Hills posted more moderate quarterly gains, at 4.2% and 3.7%, respectively, with prices in Damac Hills averaging 1,000 dirhams per square foot ($272.5) and Emirates Hills at 1,820 dirhams per square foot ($496).
Meanwhile, apartment prices in Dubai have seen a clear rise, with average values up 2% q-o-q, with existing residential areas typically posting bigger gains. Downtown Dubai and Business Bay saw the highest quarterly increases, at 5.1% and 5.0% respectively, with the former averaging 1,450 dirhams per square foot ($395) and the latter reaching 1,050 square feet ($286).
In the Dubai villa rental market, average rents increased by 5.2% on a quarterly basis, with annual rates increasing by 12.6%.
Emirati businessman Abbas Sajwani has launched an ultra-luxury real estate company, AHS Properties, with a total asset value of more than $100 million, ahead of the Cityscape exhibition in Dubai, from November 9-11.
AHS Properties sells luxury properties in Emirates Hills, as well as beachfront villas in the exclusive Palm Jumeirah in Dubai. The company currently has four luxury villas in its portfolio, including 3 villas worth 80 million dirhams ($21.8 million) and the fourth with more than 150 million dirhams ($40.9 million).
Sajwani, founder of AHS Group, the parent group of AHS Properties, said: “Demand for luxury property offerings in Dubai is growing and is set to boost sales growth in 2021.”
The number of homes sold in the emirate is currently over $10 million at 54, breaking the previous record of 31, set in 2015.
AHS Properties’ portfolio of assets consists of highly desirable and upscale properties that include the $40 million luxury villa Amara in Emirates Hills. The mansion has 45,000 square feet of built-up and living space with seven en-suite bedrooms.
Abbas Sajwani is the son of Hussain Sajwani, founder of the DAMAC Group, a successful conglomerate with a diversified portfolio ranging from capital markets, hospitality, data centers, fashion, retail and real estate.
At Cityscape on Tuesday, the developers unveiled the latest plans for new villa communities across Dubai.
At Damac Lagoons, 6,000 new villas are planned on an abandoned golf course near Remraam and Damac Hills, and are due to become available by 2024, according to The National.
Spread over an area of 145 square kilometers near the Al Maktoum International Airport, Dubai South is one of the city’s largest new developments.
The first phase of The Pulse, a residential complex of 288 homes, features three, four and five bedroom villas with prices starting at 1.35 million dirhams ($370,000).
Flexible work has fueled the trend towards villa living in most parts of Dubai.
Cory Thompson, Head of Office Suppliers Middle East Office IWG/Regus, said flexible working is here to stay and is a key driver of new market trends.
Also from Wataniya, Azizi Developments plans to spend at least $2.72 billion to develop 100 new projects over the next four years as it expects the UAE real estate market to continue to recover at a strong pace amid rising sales, according to the company’s CEO.
“Between 2022 and 2025, we are looking to launch a minimum of 100 more projects,” Farhad Azizi told The National on the sidelines of Cityscape in Dubai.
He said the developer has 10 plots of land and is looking to acquire another 90 plots to expand its future portfolio, and is in active talks with major government-backed developers including Nakheel.
“Currently, we have between 70 and 75 projects under construction and less than 30 projects have been delivered in Dubai,” Azizi said. “In 2025, we will easily complete more than 100 projects.”
Meanwhile, Dubai’s Sobha Real Estate plans to build a $4 billion mixed-use development in the emirate called Heartland Sanctuary. The project covers an area of 11 million square feet and will be built alongside its current project, Sobha Hartland, in Mohammed Bin Rashid City.
Sobha is targeting more than $1 billion in sales next year, and the company aims to achieve $1 billion in net sales by the end of 2021, according to Jyotsna Hegde, president of Sobha Realty.
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