Booming Off-Plan Property Sales
Over the years, Dubai has become a golden destination for investors and end-users due to the several advantages the UAE has to offer. However, one area of Dubai’s real estate market remained relatively subdued this year compared to other sectors: the off-plan property sales. This year marked a turning point for this segment, mainly due to the transparency in information, making it a highly secure investment. Consequently, off-plan sales – including villas, townhouses, apartments, and even commercial properties – have witnessed an increase with AED16.89 billion generated only in the first six months of 2023.
Increased Demand for Residences with Water Views
During the first six months of 2023, the property market in Dubai witnessed a high demand for premium houses with water views, such as Bluewaters Bay at Bluewaters or La Voile and La Sirene. Currently, there is also a strong trend towards buying more affordable units overviewing the sea.
Apartments Rising Trend
Apartment prices in Dubai have soared by 17% by June 2023. According to several analysts, this trend is expected to continue, especially with the introduction of new units, of which 71% are apartments. The Dubai real estate market is also witnessing an increased demand for 1-and 2-bedroom apartments, especially among families looking for a second home. Thyme in Central Park and Erin at City Walk are a good example of residences combining the convenience of the city and the beauty of nature.
Development of More High-rise Buildings
With the growing population in Dubai and parents whose children are studying abroad, there is a growing demand for smaller homes and communities more convenient for their new lifestyle. On the other hand, the real estate market is witnessing the interest of the third generation of expatriates, who were raised in Dubai and wish to continue living here, in purchasing apartments or houses within the city or in its suburbs. For example, Design Quarter at d3 in the heart of Dubai’s creative community is very appealing to young generations wishing to feel inspired by an artistic vibrant life. Jomana at Madinat Jumeirah Living is a much-coveted urban edition that offers a truly enriching lifestyle to its residents.
Increased Rental Renewals
The year 2023 has seen a significant average increase of 22% in properties rental renewals. This jump is mainly due to the lack of available properties for rent. In this regard, the Dubai Land Department has recorded only an 8% availability.
However, new rent law in Dubai was put into effect under Decree Number 43 stipulating the following: “No increase is allowed if the existing rent is up to 10% less than the average rental for similar real property units in the same location. A 5% increase is allowed if the rent is 11–20% less than the average”. With this law, more rental renewals are expected to take place by the end of 2023 and in 2024.
Positive Perspectives for 2024
To boost investments, the UAE government has taken important measures in this regard, such as reduced transaction fees and long-term residency visas to foreign investment in the residential real estate market, reinforced by broader UAE Golden Visa program that offers residency for spouses and children. All these positive steps have generated encouraging outcome, giving positive perspectives for the year 2024.
Appealing to a diverse customer base, Meraas is committed to offer best in class residential projects. Contact us to discover a variety of high-end apartments, villas and penthouses in Dubai made to suit any lifestyle.
