Hello,
I hope you have had a relaxing week. Property news this week has focused heavily on the success of branded developments, which have been steadily gaining traction since 2010 and are now fast becoming one of the most lucrative options for Dubai property investors.
If you are interested in learning more about this property market niche and what makes it such an attractive investment prospect, please feel free to reply to this email.
Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you from having to click through.
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Property News This Week
- Average Dubai Rent Soars 10% Past Official Index – Dubai has gone to great lengths in recent years to make itself a particularly attractive place for overseas investors, businesses and wealthy individuals. With ever more gilded visa options, tax-free investment opportunities and exceptionally high quality of living, it is no surprise that more people than ever are deciding to settle down in the UAE’s golden city. However, not everyone is benefiting from this influx of foreign interest. With landlords in sought-after areas now demanding much higher rent than the official rental index, many existing tenants are struggling to keep up with the bill. In the past year, rents in Dubai have risen by around 10%, although coveted communities like the Palm have seen increases of up to 36%. Many residents are raising rental disputes with the DLD in an attempt to reign in landlords’ demands.
- Dubai Sees Real Estate Transactions Worth $490m in One Day – On Tuesday, property transactions worth $490 million have been recorded in the Dubai real estate market. Among these, 391 were sales from villas, apartments and land plots, while a further 60 were in mortgage deals. This April has been the highest-grossing month in 13 years, with 6,983 real estate sales transactions worth $4.9 billion. These figures demonstrate the incredible strength of the Dubai property market, which has undergone an impressive recovery since the onset of the pandemic. Property agent Haus & Haus has predicted that throughout the next decade property prices may even double, presenting a unique opportunity for investors to take advantage of the still comparatively low prices. Over the next ten years, Dubai’s population of long-term residents is expected to continue growing, absorbing any remaining oversupply of new properties and flourishing as investors continue to put their money in Dubai businesses and real estate.
- Number of Dubai Project Launches Exceeds Pre-Pandemic Levels – With progressive visa policies and one of the most successful vaccination programs in the world, Dubai has quickly established itself as an attractive option for high net worth individuals to protect and grow their assets while enjoying an ultra-luxury lifestyle. The influx of overseas residents welcomed in since the emirate reopened its doors in 2021 has resulted in the rise in new project launches during this year’s first quarter. The number of new launches during this time even surpassed pre-pandemic levels, evidencing buyers’ growing confidence in the market. 6,677 new residential units are now in the works to match the increasing demand from both residents and investors. Despite expert projections that the market growth will slow slightly in the summer months, the overwhelming consensus is that the property market will continue to strengthen over the course of 2022.
- Branded Residences Market in Dubai is Now World-Leading – 2021 was a year of record-breaking success for Dubai as it recovered in spectacular style during a year when most global markets were buckling under the pressure of the pandemic. In particular, the prime and super-prime markets have stood out in performance as wealthy individuals have flocked to Dubai’s shores, attracted by low tax rates, luxury living standards, generous visa options and the emirate’s impressive handling of the pandemic without sacrificing people’s freedoms. Branded residences are becoming the new ‘it’ niche among luxury asset classes, having gone from strength to strength since the 2010 opening of the Armani Residences Burj Khalifa. Branded residences offer a fully secure, integrated service complete with a personalised concierge. Within this niche, Dubai has now established itself as a global leader, going toe-to-toe with the likes of New York and Miami for the number of completed and pipeline projects.
That is all we have for you this week. If you have any comments or questions on this week’s news summary then please feel free to send us an email at [email protected] – if not, see you next week.
