Demand for villas in the UAE climbed in the second quarter of this year, driven by residents seeking bigger homes amid continued recovery of the country’s property market.
Villa sale prices in Dubai rebounded with a 23 per cent annual increase in the three months to the end of June, while rental rates rose 10 per cent, according to property consultancy Asteco. Villa sale values in Abu Dhabi climbed two per cent.
“Villa rental and sales rates in Abu Dhabi and Dubai continued to surge, with sales prices in certain segments expanding by almost a quarter in the period,” Asteco said in a survey.
Jumeirah Park in Dubai recorded a 52 per cent jump in villa sales prices, the highest increase. Sales prices in Dubai Hills Estate increased 39 per cent, while prices in Springs gained 46 per cent.
Rental rates of villas also increased in Arabian Ranches, Dubai Hills Estate, Meadows, Mirdif and Dubai Sports City. Rates in Arabian Ranches rose 24 per cent year-on-year during the second quarter and 20 per cent in Dubai Hills Estate.
The UAE property market, which softened due to a three-year oil price slump that began in 2014, oversupply concerns and the pandemic, is showing signs of a recovery as people upgrade to larger homes with outdoor amenities amid an uptick in working and learning remotely.
Economic support measures and government initiatives – such as residency permits for retirees and remote workers and the expansion of the 10-year golden visa programme – have also helped to improve sentiment.
In Abu Dhabi, villa sales values also appreciated in several areas, including a 24 per cent rise in West Yas, Al Reef Villas which saw an 8 per cent increase and Raha Gardens that recorded a 6 per cent jump.
“Similar to last quarter, tenant movement was dominated by residents looking to upgrade/upsize, particularly in respect of villas and townhouses. This was facilitated by the increased availability within the mid-to-high-end sector,” Asteco said.
Developers delivered 6,650 apartments and 1,500 villas in Dubai during the second quarter. In Abu Dhabi, approximately 2,070 apartments and villas, including units in Water’s Edge and Mayan on Yas Island, as well as a number of buildings in Al Raha Beach were handed over.
More than 9,350 residential units are set for handover before the end of the year in the capital, according to Asteco.
Apartment sales prices in Dubai rose 6 per cent annually during the second quarter, while they remained flat in Abu Dhabi.
Real estate entrepreneur Myles Bush believes that if you want something, you have to work hard for it
Real estate entrepreneur Myles Bush effectively retired earlier this year, but then became a parent and started a new company with friends.
The Briton, 37, is co-founder of Phoenix Homes, a “hybrid” Dubai real estate agency that gives brokers more autonomy and 80 per cent commission.
A millionaire at the age of 28, Mr. Bush made headlines when he sealed deals for Dubai’s most expensive villa in 2016, the largest land sale in 2017 and largest residential lease in 2019.
Mr. Bush lives with his wife and baby daughter in Emirates Living.
Did money feature in your upbringing?
Dad’s an engineer, mum is a nurse. It was a middle-income family. We weren’t wealthy, but not struggling. At the same time, my parents made it clear from an early age that if I want something, I’ve got to go out and get it. If I asked dad for a fiver, he’d say: ‘Not a problem. Go and paint the fence.’
I had a paper round as a 13-year-old for £10 ($13.68) a week. On Saturdays, I’d knock on people’s doors, see if they wanted their cars washed for £3. I’ve always had money. I’m the eldest of three and it was me setting that example.
Did you learn self-sufficiency?
Also motivation. I was the kid who had the ability to buy new rollerblades, go 10-pin bowling or ice skating while most of my friends were struggling, reliant on pocket money. I took it upon myself to get my piece of the cake. That’s given me the backbone for what I’ve achieved later in life; if you want something, you’ve got to hustle, work hard.
When I got to 15 or 16 years old, I was dreaming of having a Ferrari, that Lamborghini. Fast-forward 10 years and I had a Bentley and a Ferrari. That same mindset I had when I was 13, but my goals and motivations were different.
What brought you to Dubai?
All my professional life has been in the world of property. I arrived 14 years ago working for somebody else. I was sleeping on a mattress in a friend’s maid’s room while trying to learn my craft. I worked for somebody for two years, did well and when I had my own team underneath me, I said: ‘I can do this for myself.’
So I bought into an existing company, which back then was Powerhouse Properties (later PH Real Estate), and grew it from a three-man team to 63. I stayed for 12 years until I sold my half of the business.
Money itself has never motivated me. It’s the options and opportunities that stem from money which always excited me
Myles Bush, co-founder, Phoenix Homes
What drew you to that profession?
I was following the money, but first of all, I’m a people’s person. I enjoy human interaction, I can’t think of anything worse than being behind a desk 10 hours a day. I could be out and about, meeting new people, seeing new places. I love buildings and design.
But I wanted to own the thing myself, which is what I did from the age of 24. It enabled me to make a lot of money. I would typically deal with high-profile clients, often royal family, celebrities and politicians.
Does the hybrid model benefit brokers?
The market needed a shake-up. What I call high-street agencies … typically the commission structure is 50/50 or 55/45, you’ve got to be in at 8.45am, make a certain number of calls per day. During Covid-19, I realised that if you’re on a commission-only based job, you should be self-motivated.
The idea behind Phoenix Homes was to only take entrepreneurial brokers who want to have their skin in the game. The model is quality over quantity. We’re building an elite hit squad. They pay their own marketing contributions, but they rip out the lion’s share of the money: 80 per cent.
Has parenting changed your work outlook?
I’ve understood the importance of getting balance, spending time with family. In the real estate world, we can get carried away, become greedy, working 11pm finishes. Becoming a father was a massive eye-opener – that we should judge people on results, not the hours in an office. I became a father just after the market started booming in Dubai.
Myles Bush says everyone needs something to focus on, a reason to challenge them and take them out of their comfort zone. Photo: Ruel Pableo for The National
Does money still drive you?
Money itself has never motivated me. It’s the options and opportunities that stem from money that always excited me. Having a few extra zeros in your bank balance does not put a smile on someone’s face, but being able to provide for your family, to make sure loved ones have the best health care when needed …
How do you grow your wealth?
I put my money where my mouth is and reinvest back into property. It is what I sell, what I develop, what I buy back into. I’ve got property in England, Spain and in Dubai. Some have been purely for rental yield. I’ve upgraded various properties and resold them.
I made 25 per cent last year on a flat in London. Most people were either losing money or breaking even. I did the same on Palm Jumeirah, in The Meadows, apartments in Dubai Marina. If you build a good property portfolio, you’re making money while sleeping.
There’s a good expression that the real estate market can become sick, but it will never die. I believe that, so my investment strategy is typically 90 per cent in property, the other 10 per cent is either in cash or something I can turn into cash quickly.
I like to have a nest egg, save cash. I’ve got other assets in terms of gold and commodities. It’s vital that you’ve got multiple sources of income.
Do you have cherished purchases?
I bought my mum a Porsche when I was 30. We’d gone out for lunch and were walking past a forecourt in West Sussex. She was telling me about the days she owned a convertible Spitfire and said it looked like that, pointed at the Porsche. I walked over and bought it.
I got a massive kick out of that. It’s those kind of gold moments that stand out, where I’ve been grateful what money can provide … being able to provide really good private health care for friends and family who have struggled, sending mum and dad off to the Maldives three years ago and my sister around Australia.
Have your priorities changed?
When I was in my mid-20s, young, single, my priorities were having fast cars and big nights out. Suddenly a member of the family gets sick, the priority becomes to look after that person, whatever the cost, and then the cars are immaterial.
Then a little daughter comes along and she becomes a priority. I used to be cool with a blacked-out Rolls-Royce and the latest Jay-Z album on. I’ve now got a 4×4 with a child seat and a Peppa Pig CD.
Being able to do things for friends, family and charity gives me a massive buzz.
Is there anything you’ve squandered money on?
Cars have always been my worst investment. I’ve had the Rolls-Royces, Bentleys, Ferraris. They are a depreciating asset, you are pouring money down the drain when you buy those flashy cars. At the same time, I don’t regret it. You get enjoyment for those first couple of weeks and then suddenly the shine comes off and you think, that wasn’t a very smart idea.
What luxuries are important to you?
There’s nothing physical I’m emotionally attached to … the real estate, cars, gold, the watches. There are things we want to spend money on. If I’m with my wife and daughter, I like to fly first class, but by myself I’ll still jump in economy. I don’t want to waste money. I love treating people around me who I love to nice holidays.
Do you plan for retirement?
I sold the company when I was 36 and was officially retired. I had done my financial planning based on me living to 100. But when my daughter and this opportunity of Phoenix Homes came along, three months later, it excited me.
We need something to focus on, a reason to get up in the morning to challenge us and take us out of our comfort zone. I’ve seen people retire with a lot of money and become bored or miserable, tired and lost their energy. I don’t want to become that person.
Emaar Development on Sunday said its nine-month net profit surged by 75 per cent to Dh2.384 billion while sales backlog increased to Dh28.471 billion.
How To Invest $250 And Get A Second Income
In a statement, the Dubai-listed company said it delivered highest-ever property sales of Dh20.943 billion during the January-September 2021, reflecting five times higher compared to same period last year. The company’s nine-month revenue surged 63 per cent to Dh11.604 billion.
“The strong performance of Emaar Development underlines the strength of Dubai’s property sector, driven by the robust economic fundamentals of the UAE. Through the development of our exceptional lifestyle destinations, we are able to offer world-class residential choices, which stand out for their design, build quality and amenities, to our customers,” an Emaar spokesperson said.
During the first nine months of 2021, Emaar Development successfully launched Golf Place Terraces, Palm Hills with Elie Saab and Majestic Vistas inspired by Automobili Lamborghini in Dubai Hills Estate, Palace Beach Residence and Beach Mansion in Emaar Beachfront, Caya and Bliss in Arabian Ranches III, and Nara in The Valley.
“These developments also serve as dynamic hubs, with outstanding amenities, including diverse retail and hospitality options, which energise the economy and create new jobs and business opportunities. Our successful strategy unlocks the true potential of our property development business, with the aim of delivering long-term value for our shareholders, as we continue to focus on consistently strengthening our core competencies,” Emaar spokesperson said.
Emaar Development has delivered over 3,700 residential units during the first nine months of 2021 across prime locations, including Dubai Hills Estate, Dubai Creek Harbour, Downtown Dubai, Dubai Marina and Emaar South. As of September 2021, Emaar has delivered more than 51,000 residential units, with over 25,000 residences currently under development in the UAE.
The current momentum in sales activity in Dubai is driven by a larger proportion of end-users than before, particularly
first-time buyers.
(File photo)
While off-plan was king in the Dubai real estate market in 2017, secondary market sales are likely to take centrestage next
year, say market stakeholders. Buyers are unlikely to see too much of the sales incentives and attractive payment plans
that were rolled out by extra-generous developers this year.
“The main trend we will see in 2018 is that the secondary market will overtake the off-plan market in terms of deals done.
With more handovers coming up of affordable housing, there will be a huge buzz and demand. What a lot of buyers will
be waiting for is handover so they can secure 75 per cent finance and move forward with a purchase. Off-plan will still
have a big part to play in the market, but after the acceleration in 2017 of this sector, we can expect some drop off in what
is announced or launched, which is a natural way for the market to go,” says Lewis Allsopp, CEO, Allsopp & Allsopp. Off-
plan projects now account for approximately 78 per cent of total real estate market transactions in Dubai.
It will be hard to see the off-plan market perform to the same extent as it did in 2017. Developers will find it difficult to
sustain the pace of launches, offers and incentives as this year.
“There are some very exciting projects coming to the market. Prices have stabilised and now is the time for buyers to
strike. We will see far more transactions happening in the secondary market than we did in 2017,” observes Myles Bush,
CEO, PH Real Estate .
Supply coming up
According to the Property Monitor Supply Tracker, over 40,000 residential units are expected to be completed in Dubai in
2018. With so many units expected for completion in 2018, this may put pressure on rent and sales prices, in particular
the secondary market.
“There are just as many good opportunities now in the secondary market as there is off-plan. Developers very rarely
lower their prices to fall in line with reduced market trends while the secondary market is more driven by sentiment and
emotion. Because of this, I believe there are just as many ‘good deals’ to be had in the secondary market,” adds Bush.
Affordability of property sales prices is likely to be a recurring trend in 2018. “The current momentum in sales activity is
driven by a larger proportion of end-users than before, particularly first-time buyers, who are entering the market
enthused by lower prices and encouraged by attractive payment plans offered by some developers. This trend is expected
to continue,” says Manika Dhama, senior consultant, Cavendish Maxwell.
Fence-sitters are advised to make up their minds on property investment in 2018 as several value-for-money deals
abound.
“As we approach 2020, the government will inject money into the market in order to finish Expo-related projects [the
exhibition city and the infrastructure surrounding it]. This means a lot of companies will hire personnel and buy ready
properties in order to create an asset for the shareholders. We will also see a lot of demand from expatriates who have
been watching prices dropping to an all-time low and putting the down payment on their dream homes. It is going to be a
‘now or never’ phenomenon,” reckons Arash Jalili, CEO, Unique Properties.
“Now is an excellent time to invest. It’s still a buyers’ market and buyers should only look at good value-for-money
projects. However, if you are waiting for prices to drop further, you are likely to wait a very long time. In addition, if you
are taking a two to 10-year vision, it’s far better to get on to the property ladder than spending money on rent,” informs
Bush.
2018 could be the perfect time to get in to the property market ahead of any price increases in the run-up to the Expo.
“Over the next few years, the population will increase above its current rate of approximately five per cent a year with all
the jobs the Expo creates. With this will come an increase in demand and, therefore, it’s reasonable to expect some
upturn in the market. One of my favourite sayings with regards to real estate is ‘don’t wait to buy real estate, buy real
estate and wait’,” explains Allsopp.
More rent drops?
After a marginal decline in 2017, house rents are expected to fall further next year with more supply being added to the
market.
“Residential supply, particularly from previously delayed projects, will be handed over, mostly located within the E311
corridor which is expected to put further pressure on rents,” says Haider Tuaima, head of real estate research, ValuStrat.
“In 2018, rents are going to drop further, which will result in a lot of movement in the rental market. This is very healthy
for the economy because the working category of the Dubai population [almost 85 per cent] will be left with more money
to spend. As more money is spent in other segments of the industry [such as restaurants and retail], more businesses will
be opened and that, in turn, brings more working force to Dubai. We will see an increase in the rental market by the end
of 2018 as low rents will attract a lot of people from other emirates who wish to escape traffic congestion,” points out Jalili.
Meanwhile, tenants are also likely to benefit from being able to pay their rents with more cheques. During 2017, the
number of cheques increased, with four cheques becoming the norm and in some areas six and even 12 cheques. “In
December 2016, one cheques made up 40 per cent of all transactions and four cheques made up 25 per cent whereas till
date in December 2017, one cheques made up 25 per cent of rental agreements and four cheques make up 48 per cent of
agreements. In 2018, this trend is expected to continue, with the number of cheques increasing beyond four,” forecasts
Dhama.
“The typical person or family that lives and works in Dubai are not millionaires and it’s good to see the housing market is
adjusting to account for most of the population. This is exactly what is needed in Dubai,” adds Allsopp.
Regulations to look out for
The implementation of five per cent value added tax (VAT) is the biggest regulatory change on the anvil next year.
“I don’t think this will have a significant impact on the real estate market. If anything, this should give increased
confidence in the market as Dubai needs to charge some form of tax to progress and keep developing as a country and
five per cent VAT is still way below what people would be paying in their home countries. In terms of real estate, the
purchase price and the four per cent transfer fee are not applicable for VAT. So, while there will be extra expenses, it
won’t have too much impact. The transfer fee increasing from two per cent to four per cent at the end of 2013 was a
much more costly introduction,” Allsopp concludes.
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Deepthi Nair I cover all things related to real estate in the UAE. Working as a print journalist in Dubai since 2008, I have
reported on all the flashy new projects in town. Dubai’s passion for setting new records continues to amaze me. I love to
do stories that strike a chord with the average expatriate in the UAE. If you have any news related to your community or
After a flat 2016, this year has been more heartening for the UAE real estate sector. Projects are coming to completion,
buyer enquiries across the board are up, and Expo 2020 is around the corner. In terms of trends, experts see a noticeable
shift to the off-plan sector, and projects are generally better in terms of quality.
“It looks like both investors and end users don’t mind the wait for these projects to be completed, which could be
anywhere between the end of the year to two years,” says Brigitte Tenbergen, Luxury Sales Specialist at Dubai real estate
firm Luxhabitat. “The new units to be delivered appeal to a mass audience; they have well-thought out layouts.”
Projects to watch
Among new projects to watch in 2018, Tenbergen points to the Alef Residences serviced by the W brand, and the One
Palm luxury apartments, both on the Palm Jumeirah.
Abu Dhabi has had a mixed performance this year, but locations such as Al Khalidiya and Mohammad Bin Zayed City have
bucked the trend of poor demand and rental pressure. These residential neighbourhoods along with Muroor are the best
performers, according to recent data from Chestertons. Khalifa City is another area favoured by cost-conscious tenants.
There are big things happening though in the northern emirates, which are a focus of interest for GCC investors due to
perceived good returns. In Sharjah, developer Arada is drawing interest with the emirate’s largest-ever mixed-use project.
The Dh24 billion Aljada development will house around 70,000 people over 2.2 square kilometres.
Ras Al Khaimah is the market to watch in 2018. Most experts are positive in terms of returns for investors in the emirate,
with Asteco highlighting that Al Hamra reported yields of 7-8 per cent per year on town houses and villas and 8-9 per cent
on smaller apartments. Insiders predict an 8-10 per cent return on beachfront properties such as Pacific.
Interestingly, investors who moved to RAK as a second option to Dubai and Abu Dhabi have found it to be a value-for-
money destination with comparable benefits.
Overall, it has been a positive year for UAE developers. Revenues came in higher for Damac Properties, for example, at
Dh5.8 billion over the first nine months, versus Dh5.12 billion a year ago. Damac is keeping a good pace on the delivery
side, handing over 1,923 homes, including 852 units outside the UAE.
Despite the overall perky sentiment, it is no secret that a price adjustment occurred over 2017, with market rates
dropping since the start of the year. However, insiders are confident this won’t continue in 2018.
More buyers
“In my opinion, at the start of this year prices had risen too sharply and as all marketplaces are cyclical it was inevitable
there was going to be an adjustment,” says Myles Bush, CEO at Dubai’s PH Real Estate . “As a business, since the end of
summer, we have seen an increased number of buyers, which shows a very positive sentiment.”
Bush says that Dubai Marina, Jumeirah Lake Towers (JLT) and Jumeirah Village Circle (JVC) have been very active in 2017
and had provided the most business for his company in Dubai.
Raj Sahni, owner and chairman of the conglomerate RSG International Group, feels the current UAE real estate market is
a bit quiet, but is ripe for investment. “It offers some great avenues for smart investors and promises to yield good
returns,” he says. “Anyone with a keen sense of real estate and smart enough to spot opportunities are investing in the
market. Its past performance and future prospects are enough to capture the attention of investors the world over.”
PHOENIX HOMES RISES UP TO SET NEW REAL ESTATE BENCHMARK IN DUBAI
Highly experienced Dubai real estate experts form new company which breaks the mold
Phoenix Homes promises professionalism, transparency and 80% commission for brokers
Ground-breaking commission model is a regional first, designed to attract mature, reliable, experienced brokers
Phoenix Homes aims to be an elite brokerage, with elite brokers
PHOENIX HOMES is a new hybrid estate agency already taking the market by storm, the brainchild of property experts Myles Bush, Martin Hyre and Padraic Hickey. Phoenix Homes is a revolutionary real estate company, offering a brand-new approach to business.
With a view to shaking up the stale status quo, Phoenix Homes has taken lessons from the pandemic and offers brokers complete freedom to work when how and where they like, with an 80% commission model. This extraordinary model goes against the regional norm – splitting commission 50/50 between the agent and the agency.
And while some US models charge brokers for desks and marketing, Phoenix offers workspace for those who want it, and leaves each broker to decide if they want to contribute to marketing of their property portfolio.
And on the first day of trading, Phoenix Homes already has nine highly experienced, mature brokers, a professional admin team and a 3,000 square feet office in Barsha Heights.
Myles explains: “We sat down and created the dream agency for us. As individuals, we all broker transactions, we’ve all got our own network, and we sat down around a table and decided what we wanted from an agency. The higher commission model is known in America, but no one is doing it here. We’ve fine-tuned it and are so excited to be bringing a fresh new approach to the business. The market has shifted, the world has changed, and we want to create a new sort of company that respects and acknowledges that.
“A friend said to me the other day, ‘all the other real estate companies are like schools, where you are told what to wear, when to turn up, what to say and what to do.’ What we are building is not a school, it’s more like a University, you know.”
Given the experience of Myles and his partners – both long term friends and fellow real estate brokers – the company already carries clout in the local markets.
Business partners Martin Hyre and Padraic Hickey come with a wealth of experience. Martin has 29 years of agency experience, 10 of which are in Dubai, while Padraic boasts 10 years of Dubai real estate experience
Martin picks up the story: “All three of us were in a position where we reached the part of our careers where we wanted something different. We wanted a better work life balance than we previously had. We were looking for something which was going to give autonomy back to brokers, and so rather than actually go off and do things independently, we are three really good friends and we decided to do it together. So, we just rebooted, to form Phoenix Homes.”
The vision of a new kind of real estate brokerage came easily to the innovative trio, with Martin continuing: “Why did we pick the name Phoenix Homes? We want brokers to rise to the pinnacle of their careers, and we want them to have everything available to them to be the best they possibly can in their lives, and they’re not going to be able to do that, with other business models that give a 50/50 commission split. 80% of the commission gives them the best possible chances to fill up their bank accounts, retire early, and just have a beautiful work life balance.”
That work/life balance can only come with experience, a bulging contact book and the maturity to manage your workload. Junior brokers do not fit in the Phoenix Homes model. As Myles puts it: “If you’re a new broker who wants training, and to be told what time to start and end your day, what to wear and say, then we are not the agency for you.”
Bush says joining Phoenix Homes is akin to starting your own agency, without all the capital required. “We need to trust our brokers to get on with it. They will be judged on performance alone. We won’t offer training or expect them to be in the office 9-5 – although, of course, the office and the admin staff are there for when they’re needed. I’d go as far as saying we are looking more to recruit dynamic, entrepreneurial businessmen and businesswomen rather than just brokers.”
And mature, heavyweight brokers joining the agency can choose to spend some of their commission on promoting their portfolio via Phoenix Homes’ channels if they wish. They can also promote their properties via whichever methods they know work best for them, without paying money into the firm.
As the first agency to adopt a clear cut, uncomplicated 80% commission model, Padraic says he’s confident the agency will grow rapidly, organically, and aims to attract 20-30 brokers by year end.
Padraic says: “Our model works on trust. On finding mature brokers, who know exactly what they are doing, and how to generate sales and lettings. Anyone who knows me knows my style wasn’t to be chained to my desk all day. I’ve always preferred being out and meeting people. Our clients will trust us because we are all highly professional and experienced – so it doesn’t matter what hours we keep.”
Phoenix Homes will offer sales and lettings of both residential and commercial properties in Dubai, with plans to swiftly open a UK office to assist in international property negotiations.
Dubai: The Meydan area is turning into an investment hot spot — the master-development recorded the biggest land deal
in the year to date, according to PH Real Estate , a brokerage firm. The plot measuring 120,000 square feet was sold to an
Emirati buyer, who plans to build three custom-designed mansions for members of the family. The seller was the
businessman Kamel Alzarka.
The land, which sits directly in front of the golf course and central lakes, is probably the largest residential freehold plot in
Dubai. Myles Bush, CEO of PH Real Estate , which brokered the deal, said: “There is nothing of this size that we know of in
Emirates Hills or on the Palm Jumeirah. These kind of high-profile transactions have a positive knock-on effect to the rest
of the market.” (Last year, PH Real Estate brokered the sale of a Dh53 million residential property in Emirates Hills.)
The Meydan district and the MBR City of which it is a part has been witness to a slew of high-profile deals since the start of
the year. Demand has also been helped by the launch of works for the Meydan One Mall, one of the biggest shopping
destinations in the works in Dubai.
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Property prices in Dubai rose 2.5 per cent in April recording the largest single-month increase since March 2014 as the economy recovers from the coronavirus pandemic-driven slowdown, according to a new report.
The average property price in the emirate climbed to Dh895 ($244) per square foot last month from Dh873 per square foot recorded in March, the Property Monitor monthly market report said.
“Since the end of 2020, prices have steadily recovered to record gains of 9.5 per cent in the last six months,” the report said. “However, this strong performance is not uniform across all communities, with some areas still displaying price weakness.”
The strong double-digit increase recorded in some communities is likely to slow in momentum “as the recovery switches to a more sustainable pace across Dubai as a whole”, according to the report.
Property prices in the UAE are expected to stabilise in 2021 as the economy bounces back from pandemic headwinds, driven by government initiatives to spur growth.
New programmes such as visas for expatriate retirees and the expansion of the 10-year golden visa scheme to attract foreign professionals to the UAE are also expected to support the local real estate market.
Dubai’s total transaction volumes in April stood at 4,879 deals, recording a year-on-year increase of 167.4 per cent and a 6 per cent jump on a monthly basis.
“Continuing the recent trend, there was a good volume of transactions in the high value segment of properties worth over Dh10 million. In all, 90 transactions were recorded for this segment, representing a month-on-month growth of 6.7 per cent,” the report said.
Some 81 villa transactions above Dh10m have been recorded on Palm Jumeirah so far this year, compared to 54 across the whole of 2020.
Dubai also recorded 1,926 off-plan transactions in April, up 13.9 per cent on a monthly basis and 46.5 per cent year-on-year.
“Betterhomes recorded the highest number of sales transactions on record for the month of April, despite it coinciding with the beginning of Ramadan,” Richard Waind, group managing director of brokerage Betterhomes, said.
“The extreme low interest rate environment and mortgage availability continues to drive healthy domestic end-user activity, and investors are returning with confidence, buoyed by recent capital gains.”
Wealthy Europeans clients are also buying the property in the UAE, he said.
“The lifestyle, safety and business-friendly environment are key pull factors and we think the post-Covid tax bill in many countries will act as a key push factor.”
A Dubai businessman of Indian nationality has spent $14.4m (AED53m) on a mansion in high-end residential district
Emirates Hills. The 24,000 square foot villa, which overlooks a golf course, is located on a 39,000 square foot plot, which is
equivalent to more than half the size of a football pitch. It was found by the buyer on UAE-based real estate portal
propertyfinder.ae.
“Dubai’s real estate market remains one of the preferred options for the world’s ultra-high net worth individuals and the
leading choice for those from the GCC,” said Lukman Hajje, Propertyfinder Group chief commercial officer.
The deal, closed by PH real estate , reportedly set a record for 2016, according to PH chief executive Myles Bush. In the
same year, the median price of a villa in Emirates Hills was $9.8 (AED36m), making it Dubai’s most expensive
neighborhood.
Culture Village came second with the average villa price in the Creekside locale standing at $6.5m (AED24m), bolstered by
high demand for the Palazzo Versace properties.
Palm Jumeirah homes were advertised for an average price of $735 (AED2,700) per square foot, making it the priciest area
by the. Villas in Emirates Hills, which are bigger and command a higher actual selling price, came in at $731 (AED2,686)
per square foot. Downtown Dubai came third with $671 (AED2,467) per square foot put it third.
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In terms of volume, April transactions were up 4.2 per cent compared to March and 0.6 per cent more in terms of value
Dubai’s real estate sector recorded 4,832 sales transactions worth Dh10.98 billion in April 2021, the highest value in four years, specifically since March 2017.
In terms of volume, April transactions were up 4.2 per cent compared to March and 0.6 per cent more in terms of value. This brings the year to April total to 16,577 sales transactions worth Dh36.12 billion, according to the 14th edition of Mo’asher, Dubai’s official sales price index, launched by Dubai Land Department (DLD), in cooperation with Property Finder.
In April, 70 per cent of the total transactions were up to Dh2 million, while 23 per cent were between Dh2 million and to Dh5 million, 4.0 per cent were between Dh5 million and Dh10 million and 3.0 per cent above Dh 10 million.
While off-plan sales rose 12.9 per cent, the highest in 14 months, the month saw 60 per cent transactions in secondary/ready market segment and sand 40 per cent in off-plan category.
Apartment sales also accounted for 69 per cent of the total, and 31 per cent for villa / townhouse sales. When we look at the volume of transactions, the off-plan market transacted 1,934 properties worth Dh3.09 billion and the secondary market transacted 2,898 properties worth Dh7.89 billion. Comparing this to March 2021, the number of off-plan sales transactions in April increased by 12.9 per cent, the highest in 14 months and the secondary/ready property transactions decreased for the first time in 11 months by 0.92 per cent, said the report.
“Since the start of the pandemic, we have seen apartment prices decline. This is partially due to more affordable housing coming into the market, more supply of apartments completed, and an increase in demand shifting to villa/townhouses,” said the report.
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