I hope you have had an enjoyable week! Here at Track Capital, we have been celebrating a truly fantastic start to the month, with new purchases being secured for clients already, and the anticipation of a strong month ahead as investor interest in property continues to stay at an all-time high.
If you are wondering what factors are the cause for Dubai’s recent recovery and what its significant market boom might mean for the year ahead, reply to this email.
All the data points to Dubai as one of the best areas globally to invest in property this year, and we would love to share that data with you.
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 having to click through.
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Property News This Week
- Dubai Records Staggering $408million of Real Estate Transactions – Dubai’s real estate market continues to go from strength to strength, with the DLD recording 294 sales transactions on Monday. The transactions were worth AED666.33 million, with mortgage deals of AED915.77 million. This comprised of 265 apartments and villas to the value of AED556.45 million and 29 undeveloped land plots worth AED109.88 million. These figures show a sustained level of interest in Dubai as a prime area for property investment, which is unsurprising when considering Dubai’s excellent recovery, with the government’s innovative and sustained efforts to strengthen Dubai’s market being a resounding success.
- Dubai Market Recovery Likely to Continue This Year – Real estate expert Knight Frank has predicted that Dubai’s prospects in the luxury home market for the year ahead are looking very positive after 2021 saw Dubai enter a dramatic V-shaped recovery. Commendable handling of the pandemic and policy-backed encouragement to wealthy overseas investors have both been major factors in effecting this swift turnaround.
Dubai luxury real estate prices grew by 44% in 2021, pathing the way for the Middle East business hub to reach the top of Knight Frank’s Prime International Residential Index 100. However, overall prices remain 30% below their peak in 2014. Although the market is expected to slow somewhat in 2022, there are strong signs of healthy and sustainable growth for the foreseeable future.
- Dubai’s Construction of World’s Tallest Hotel Reaches Halfway Mark – Soon-to-be the world’s tallest hotel, the Ciel development has now reached the halfway point in its construction, with its grand opening on schedule to take place in Q4 2023. This highly anticipated hotel will contain over 1,000 luxury suites and guestrooms, along with an impressive list of premium amenities. The signature rooftop Sky Terrace will be a dazzling addition, with a private bar and infinity pool offering incredible views of the Dubai cityscape and sunsets over the Arabian Gulf. The Ciel hotel has a sleek and innovative design featuring an atrium spanning 300m in height supporting stacked landscaped terraces for residents to enjoy. Never-before-seen architecture like this will make Ciel Hotel an iconic landmark among the world’s super-tall buildings.
- Developers Act to Mitigate Russia-Ukraine Conflict Supply Disruption – The impact of the Russia-Ukraine conflict is already appearing in every aspect of economies around the world, and property development in Dubai is no exception. With supply issues affecting the delivery of essential building materials from Ukraine, Developers and contractors in the UAE are having to consider alternative sourcing options to keep their projects on schedule. Without finding a solution to the shortage, many developers could be forced to accept higher costs for the same materials, resulting in 20-30% project cost increases, which is just one of many increases in costing experienced in the private and commercial building sector since the onset of the covid-19 pandemic. These increases in supply costs will inevitably filter back to buyers as developers look to recoup their expenses.
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.