DXB News

Dubai developer Nakheel said it sold one of the few remaining beachfront plots on Palm Jumeirah’s West Crescent to the UAE-based real estate company Select Group and its joint venture partner Emirates Strategic Investments Company.

The companies are planning to develop branded luxury homes and a boutique hotel on the 17,919 square metre plot, master developer Nakheel said in a statement on Wednesday.

The joint venture already owned an adjacent plot spanning 47,474 sq m. The new purchase brings the group’s total beachfront development area on Palm Jumeirah to more than 65,410 sq m, the statement added.

“The demand for tranquil beachfront locations has increased exponentially and our aim is to target the ultra-luxury segment,” Rahail Aslam, founder and group chief executive of Select Group, said.

Dubai’s property market is seeing signs of recovery, driven by the emirate’s economic support measures and government initiatives, including visas for expatriate retirees, remote workers and the expansion of the 10-year golden visa scheme.

Dubai registered a total of 25,455 real estate transactions worth Dh92 billion from January to April 2021, the Dubai Land Department said on Monday. This represented an increase of 51 per cent in terms of the volume of transactions and 72 per cent in terms of their value compared with the same period in 2020, the DLD said in a statement.

The emirate attracted 8,749 new investors between January and April 2021. They accounted for 65 per cent of the total number of real estate investors in that period and registered a growth of 54 per cent compared with the same period last year, the DLD added.

Palm Jumeirah figured among the top five communities for villa sales in April. In terms of apartment sales, Dubai Marina, Burj Khalifa, Palm Jumeirah, Business Bay and Al Thanyah Fifth registered the highest number of transactions in April, the agency said.

Located between the One & Only and W Hotel Palm Jumeirah, the plot is one of the last few remaining beachfront spaces in the development.

“We are excited to capitalise on [the] recent strong turnaround in [the] Dubai real estate sector by acquiring such quality assets,” Khalid Al Suwaidi, chief executive of ESIC, said.

The hotel operator and architects will be announced within the next few weeks, the companies said.

Select Group plans to start construction on the project before the end of the year, with a completion date expected in three years.

“We are delighted that all parties’ collaboration has concluded with the sale of one of the last remaining plots at our flagship master development, Palm Jumeirah,” a Nakheel spokesperson said.

Other projects built by Select Group include Jumeirah Living Marina Gate in Dubai Marina and 15 Northside in Business Bay.

Source: https://www.thenationalnews.com/business/property/uae-s-select-group-buys-beachfront-plot-on-palm-jumeirah-1.1230360

Favourable interest and mortgage rates, a highly effective Covid-19 vaccination drive, and new visa rules for investors, will result in Dubai’s property sector witnessing a “big boom”, especially when the city opens its doors for Expo 2020, says Rizwan Sajan, chairman and founder of Danube Group.

Speaking in an exclusive interview with Khaleej Times on the sidelines of the INDEX Dubai 2021 exhibition, Sajan remarked that Dubai would continue to be a city that enjoyed the confidence of global investors. The emirate had proven itself to be resilient in the face of several challenges that have gripped the global economy time and time again, he said.

“Expo 2020 is going to bring a big boom for Dubai,” he stated. “If you look at what has happened over the past two to three months, you will see that real estate prices have gone up again. This means that developers will be eager to start constructing new apartments and villas. We are blessed, especially when you look at all the policies that the government has been coming up with, such as the Golden Visa and the 100 per cent ownership laws, to make expats feel like they are at home. All of these policies will definitely help to build confidence in investors that are interested in setting up their businesses here.”

“In addition, the way that the Covid-19 crisis has been handled here will also send a strong message to the world that Dubai is ready for business,” Sajan observed. “We are already seeing a lot of investors from India expressing an interest in coming and opening their businesses in the city. Not just that, but a lot of European and Chinese expats are looking to purchase property in Dubai.”

He also reiterated his advice on the best time to invest in property in the emirate. “I can say that we will see a big real estate boom coming in the near future. I keep telling people that the time to buy property, if you are interested in doing so, is now because later you will not get the same prices that you are seeing in the market right now. Interest rates right now are very low just like the property prices and even the mortgage rate is extremely attractive.”

Property prices over the past six months, he revealed, have gone up by 30-35 per cent, further highlighting the positivity in the market. He also said that property in Dubai is still cheaper compared to many other major international hubs such as Hong Kong and London. While villa prices have gone up, and will continue to do so in the coming months, apartment prices are still low and make for an attractive investment.

“The luxury property market has already started recovering, and the affordable property market will follow,” Sajan added. “Many companies that had laid off their employees are looking to rehire their staff so business is getting back to usual. I also believe that the supply of new units will remain balanced in the near-term.”

Asked about how the Covid-19 pandemic had impacted the building materials market, he said that prices have been “going very very high.”

The main reason for this, he revealed, has been the difficulty in arranging logistics and the shortage of material.

“The demand is more due to the consumption in the US and Europe,” Sajan said. “We have seen this trend – where the prices have gone up by more than 50 per cent in the building materials segment – after many years. We are trying our best to get materials because of the huge demand that we are seeing for Expo 2020 Dubai; lots of projects have to be completed before the event opens its doors. However, I believe that there will be no problem in Dubai as far as the construction industry is concerned.”

Source: https://www.khaleejtimes.com/business/local/dubai-real-estate-to-see-big-boom-once-expo-2020-starts

Source: https://gulfnews.com/business/property/real-estate-deals-worth-dh962m-concluded-today-in-dubai-1.1623591691608

Source: https://www.khaleejtimes.com/business/dubai-realty-rally-to-continue-for-years-hsbc-morgan-stanley

Dubai’s resilient real estate sector continued to witness a steady surge in investments by recording 5,359 deals worth over Dh11 billion in May.

While 11,387 new investors entered the market comprising 66 per cent of total registered investors since the beginning of the year, 6,021 real estate transactions worth Dh21.8 billion were registered in May, an increase of 197 per cent and a surge in value of 221 per cent compared to May 2020, according to the real estate bulletin issued by the Dubai Land Department (DLD).

The bullish data once again underscores Dubai’s attractiveness as a preferred global real estate investment destination and the emirate’s “flexibility in adapting to various developments, thanks to the legislative environment and superb infrastructure”, the DLD’s Real Estate Updates noted.

Since the beginning of the year, Dubai has recorded Dh36 billion worth of real estate investments, an increase of 44 per cent.

The bulletin showed that the value of real estate brokerage achieved by effective real estate brokers in Dubai’s real estate reached Dh827 million since the beginning of the year. In addition, 253,959 Ejari contracts were recorded in January to May, 53 per cent of which were new and 42 per cent were renewed.

The residential sales index achieved 1,071 points during May, with a growth rate of 7.1 per cent compared to the base year.

The top five areas that attracted investors in the villa sector included Hadaeq Sheikh Mohammed bin Rashid, Wadi Al Safa 5, Wadi Al Safa 7, Al Thanyah Fourth and Palm Jumeirah. In apartment sales, Dubai Marina, Burj Khalifa, Palm Jumeirah, Business Bay and Al Thanyah Fifth topped the list.

The DLD said it expects the real estate sector to witness continued growth and a greater recovery in the coming months leading to Expo 2020, which “will attract tourists and visitors from around the world and constitute a great opportunity for the real estate sector to strengthen its position regionally and globally”.

According to JLL Mena, a spate of new regulatory measures, local availability of the vaccine, and the upcoming Expo 2020 festivities are reasons and opportunities for the rebound of the real estate market in 2021.

Analysts believe that demand picked up amid “a wave of government reforms over the past 12 months, attractive mortgage rates, and a shift in demand patterns due to Covid-19”.

According to Dubai Statistics Centre data, Dubai’s economy is projected to grow four per cent this year after an estimated 6.2 per cent contraction in 2020. As a key contributor, the realty sector accounts for about eight per cent of Dubai economic output.

Weekly deals hit Dh5B

Meanwhile, realty transactions in Dubai were valued at Dh5 billion this week, with the total at 1,921; 135 five plots were sold for Dh716.18 million, while 1,298 apartments and villas were sold for Dh2.54 billion.

The top three transactions were lands sold in Island 2 for Dh87.5 million, Al Hebiah First for Dh62.5 million and Island 2 for Dh87.5 million.

Al Hebiah Third recorded the most transactions with 35 worth Dh75.96 million, followed by Hadaeq Sheikh Mohammed bin Rashid with 23 worth Dh126.23 million and Al Hebiah Fourth with 20 worth Dh91 million.

The top three transfers for apartments and villas were apartments sold in Marsa Dubai for Dh345 million, Burj Khalifa for Dh280 million and Palm Jumeirah for Dh196 million.

The sum of mortgaged properties was Dh2 billion, with the highest being a land in Al Qusais First mortgaged for Dh276 million. Eighty-four properties were granted between first-degree relatives worth Dh201 million.

Source: https://www.khaleejtimes.com/business/real-estate/dubai-realty-keeps-its-poise-posts-transactions-worth-dh11b

Source: https://gulfnews.com/business/property/azizi-developments-decides-to-have–crystal-lagoon-instead-of-canal-at-its-riviera-in-mbr-city-1.1624860929624

In June, Dubai’s resilient property market maintained its resounding recovery, with a 2.1 per cent price spike, the eighth successive monthly surge.

European buyers, mostly end-users relocating their families to the relative safety of Dubai, have been driving a significant rebound in the emirate’s property sector as prices hit an eight-year high, recording a 10 per cent year-on-year jump in June.

A report by Property Monitor, a leading property portal, said European buyers emerged as “a key demographic recently, driving sales with most being end users.”

“Based on our conversations with brokers and industry experts, the motivation here is the relocation of entire families from Europe as opposed to the sole breadwinner living in Dubai. As further evidence of this trend, several schools have reported an uptick in enrolments of new residents,” said the report.

“What we’re seeing here is an evolution… where people are buying homes to live in after renting for a few years, then going on to sell those homes and upgrade to larger properties, creating a mature property cycle,” Lewis Allsopp, CEO of Allsopp & Allsopp, the estate agency, said.

In June, Dubai’s resilient property market maintained its resounding recovery, with a 2.1 per cent price spike, the eighth successive monthly surge as transaction numbers recorded their best performance since December 2013 with 6,389 deals recorded, said the portal.

Median prices in June were Dh928,848 for apartments, Dh1.7 million for townhouses and Dh3.4 million for villas.

“On a monthly basis, prices spiked 2.1 per cent and now stand at Dh924 per sq ft. They were last seen at these levels two years ago. Since bottoming out in November 2020, property prices have risen by 12.7 per cent,” said the report.

“The recovery still remains uneven between communities with the strongest price increases seen in the market for villas and traditionally sought-after communities. However, we expect the recovery to balance out over the rest of 2021 and switch to a more tenable pace across Dubai,” said the report.

According to Dubai Land Department data, the Dubai property market recorded Dh68 billion worth of deals) in the first 53 days of the year. For the full year, the projections are for Dh300 billion plus.

Demand continues to remain robust for properties at the top end of the market with transactions for properties valued over Dh10 million registering yet another strong month.

In all, 111 transactions were recorded for this segment in June, slightly lower than the 117 in May, but still indicative of a buoyant market.

On a monthly basis, sales jumped 43.7 per cent and climbed a massive 174 per cent from last June when buyers were first taking notice of attractive real estate deals amid easing movement restrictions.

“A block of delayed registrations in June for previous months was recorded from Azizi Developments, including off-plan and initial sales from the developer. While this was a notable contributor to the rise in sales volumes this month, even without these deals, June recorded one of its best performances for transactions since at least 2009,” said the report.

A total of 2,419 off-plan transactions were registered in June, up 43.3 per cent on a monthly basis. Completed properties took 62.1% market share in June 2021 versus 37.9 per cent for off-plan, continuing a year-long trend as new launches stalled, and buyers demonstrated a preference for ready-to-move properties.

However, completed property transactions may start to give up some of these market share gains as new project launches gather pace. Meanwhile, initial sales transactions—the first sale of a property from the developer for an off plan or completed project—jumped 51.2 per cent monthly to stand at 3,800 in June.

Mortgages for villas and townhouses increased month-on-month while loans for apartments declined, reflecting buyer preferences. Overall, at 2,135, new loans for June fell by 9.4 per cent over the previous month, driven by a decline in bulk mortgages, which are primarily taken out for apartment buildings. — [email protected]

Source: https://www.khaleejtimes.com/business/european-buyers-relocating-families-to-dubai-spur-realty-rebound

Myles Bush, former CEO of PH Real Estate and now Director/Co-founder of Phoenix Homes, on how he climbed the ladder to lead a firm that competes with Dubai’s biggest

Source: https://www.arabianbusiness.com/entrepreneur-of-week-myles-bush-ceo-of-ph-real-estate-630075.html