Latest news with #AndrewCummings
Arabian Business
22-05-2025
- Business
- Arabian Business
Umm Al Quwain an ‘investment hotspot' in UAE, say real estate experts
Umm Al Quwain is positioning itself as the UAE's next property hotspot, with major developers launching large-scale projects in partnership with the emirate's government. The northern emirate, known for its 23 km of coastline and natural landscapes, is experiencing increased investor interest as neighbouring property markets reach maturity and price points that exclude many buyers. In an exclusive interview with Arabian Business, Andrew Cummings, Head of Residential Agency at Savills Middle East, attributes the growth to a broader trend of investment focus shifting to the northern emirates. Umm Al Quwain's rising market potential 'The renewed focus on northern emirates as investment hotspots is playing a key role, particularly with the rise of Ras Al Khaimah following the Wynn announcement. Umm Al Quwain is emerging as a natural alternative, offering early-stage opportunities in a market still in its growth phase,' Cummings explained. Major masterplan developments, specifically Sobha Siniya Island and Downtown UAQ | Sobha Realty in Umm Al Quwain, have become the primary investment catalysts in the emirate. These flagship projects, delivered through strategic partnerships between the government and established developers like Sobha Realty, are transforming the landscape and driving market growth. 'With its serene natural landscape and rich cultural heritage, Umm Al Quwain is now entering a new phase, led by a bold and ambitious vision for sustainable growth and urban development,' Francis Alfred, Managing Director at Sobha Realty told Arabian Business. Alfred further explained that the company's expansion into Umm Al Quwain aligns with their long-term vision to extend luxury living options across the UAE. The developer's recently announced Downtown UAQ | Sobha Realty, is a 25 million sq. ft. coastal 'city within a city' masterplan featuring 11 km of shoreline, with 7 km dedicated to beaches and beach parks. According to Alfred, the development will be divided into three districts covering entertainment, residential and commercial purposes, with over 50 per cent allocated to green and open spaces. The project focuses on apartment buildings with 1 & 2-bedroom apartments and 3-bedroom duplex options, starting from AED 1.11 million. High-yield investment potential For investors and first-time buyers, the emirate offers an opportunity to enter the market at prices significantly lower than Dubai or Sharjah. 'Downtown UAQ | Sobha Realty offers an exceptional entry point for first-time buyers, allowing them to invest in a flagship master-planned community during its formative phase,' Alfred explained. He added that investors can expect annual rental yields in the range of 7-9 per cent, making it 'a compelling opportunity for both passive income and asset growth.' This assessment aligns with Cummings' view, who noted that 'gross yields of 6-8 per cent are achievable, particularly in the villa segment. With capital values still on the rise, there is upside potential for investors entering at this stage' in the emirate overall. The property market in Umm Al Quwain has shown 'consistent upward momentum since 2020,' according to Alfred, reflecting infrastructure development and the emirate's growing profile. Waterfront villas and off-plan residential units in new masterplans are performing well, with buyers seeking lifestyle-led communities that offer potential for long-term capital appreciation. The buyer demographic spans regional investors, mid-income end users, and those priced out of neighbouring markets. Cummings also noted a 'growing base of buyers who are seeing this as a second-home market with strong future upside.' Government involvement has been crucial to this development trajectory. 'The government has played a clear role by enabling large-scale partnerships with trusted developers and prioritising long-term infrastructure planning,' Cummings explained. Sobha Realty's Alfred further highlighted their partnership with the Government of Umm Al Quwain as reflecting 'a shared vision to create a future-proof destination that balances economic growth with environmental preservation.' The Downtown UAQ | Sobha Realty project includes major road, utility, and coastal infrastructure improvements, with provisions for commercial zones and free trade operations. While the growth outlook appears positive, challenges remain. Cummings identified awareness and infrastructure delivery timelines as potential obstacles. 'As with any emerging market, consistent execution will be key to sustaining momentum and building long-term buyer confidence,' he stated. Alfred pointed to Sobha Realty's 'Backward Integration' business model as key to maintaining quality while keeping prices accessible. 'Unlike traditional development business models that rely on multiple external contractors, vendors, and service providers, we maintain complete in-house control over every aspect of the development process, from design to engineering, manufacturing, and construction,' he explained. This approach, he added, protects projects from global supply chain volatility and price fluctuations by sourcing raw materials locally through their own manufacturing units. Sobha Realty, Deyaar projects lure investors to Umm Al Quwain real estate market Looking ahead, Sobha Realty anticipates sustained demand for their masterplans in Umm Al Quwain. Over the next five years, they plan to begin handing over both their masterplan developments in the emirate. Beyond Sobha's projects, other developments gaining traction include Deyaar's AYA Beachfront Residences and the UAQ Creek Waterfront, which are attracting lifestyle-driven buyers. For investors considering the market, Cummings advised watching the phased rollout of Downtown UAQ | Sobha Realty, particularly as commercial and hospitality elements become available. Sobha Siniya Island's luxury residential offering is also expected to drive interest in the medium term. 'Umm Al Quwain offers a combination of value, scale, and long-term vision. For investors, it represents an opportunity to get in early in a market that is just beginning to define itself,' he concluded.
Mid East Info
13-05-2025
- Business
- Mid East Info
Robust transaction activity powers Dubai's residential market in Q1 2025 - Middle East Business News and Information
Property transaction volumes rose 23% y-o-y, dominated by apartments Dubai's residential market started the year on a strong note, amid sustained demand by a growing population and heightened investor interest. According to the Savills Q1 2025 Dubai Residential Market in Minutes report, the first quarter of the year recorded a robust 23% y-o-y increase in transaction volumes, underscoring the emirate's ability to hit a sweet spot between investment potential and quality of life. Rachael Kennerley, Director – Research says, 'In Q1 2025, off-plan sales continued as the cornerstone of transaction activity, representing 69% of all deals. The residential market witnessed robust supply, with more than 30,000 units launched during the quarter, most of which were apartments. This figure is more than double the volume recorded in the same period last year, as developers capitalised on strong market demand.' The ready market — comprising transactions in completed and handed-over projects – made up the remaining 31% of transactions. Apartment sales accounted for the majority of transactions at 81% in this segment, reflecting its dominance in Dubai's housing stock. Looking at the market overall, apartments dominated sales activity, accounting for 76% of all transactions. However, the villa and townhouse segment witnessed a notable resurgence, with transactions rising from 18% in the previous quarter to 24% in Q1 2025. Prominent micro-markets located along the Al Khail corridor, including Jumeirah Village Circle (JVC), Dubailand, Damac Hills 2, The Valley, and Damac Lagoons, accounted for 55% of total transaction volumes and 56% of all newly launched residential units – land saturation and limited affordability in the city's core residential locations have pushed development toward peripheral areas. Dubai's prime residential market continues to perform well, underpinned by Dubai's sustained appeal for HNWIs. Demand was driven by the strong quality of life proposition, a low tax environment, easy business set up costs and the strength of the Golden Visa programme. Over 1,300 units were transacted at values exceeding the AED 10 million mark in Q1 2025 — marking a 31% y-o-y increase. Contrary to the wider market, villas dominated prime transactions with 73% of market share, recording a 52% y-o-y rise and a 4% q-o-q uptick. According to Andrew Cummings, Head of Residential Agency , 'Demand across the prime residential segment in Dubai has not simply sustained but strengthened. Amid tariff wars, geopolitical uncertainties and unpredictable tax environments, the world's wealthy increasingly recognise Dubai's appeal, and developers are rising to the occasion. Villas in coveted locations, space and privacy are the preferred choice but supply remains restricted for the time being.' Looking ahead, the outlook for Dubai's residential sector remains optimistic. Savills anticipates that amid global macroeconomic and political uncertainties, the emirate's political stability, competitive regulatory landscape, and business friendly ecosystem are expected to support ongoing population and investment inflows. The development pipeline is however significant and necessitates a balanced approach to supply and demand.
Hi Dubai
13-05-2025
- Business
- Hi Dubai
Robust transaction activity powers Dubai's residential market in Q1 2025
Property transaction volumes rose 23% y-o-y, dominated by apartments. Dubai's residential market started the year on a strong note, amid sustained demand by a growing population and heightened investor interest. According to the Savills Q1 2025 Dubai Residential Market in Minutes report, the first quarter of the year recorded a robust 23% y-o-y increase in transaction volumes, underscoring the emirate's ability to hit a sweet spot between investment potential and quality of life. Rachael Kennerley, Director – Research says, In Q1 2025, off-plan sales continued as the cornerstone of transaction activity, representing 69% of all deals. The residential market witnessed robust supply, with more than 30,000 units launched during the quarter, most of which were apartments. This figure is more than double the volume recorded in the same period last year, as developers capitalised on strong market demand. The ready market — comprising transactions in completed and handed-over projects – made up the remaining 31% of transactions. Apartment sales accounted for the majority of transactions at 81% in this segment, reflecting its dominance in Dubai's housing stock. Looking at the market overall, apartments dominated sales activity, accounting for 76% of all transactions. However, the villa and townhouse segment witnessed a notable resurgence, with transactions rising from 18% in the previous quarter to 24% in Q1 2025. Prominent micro-markets located along the Al Khail corridor, including Jumeirah Village Circle (JVC), Dubailand, Damac Hills 2, The Valley, and Damac Lagoons, accounted for 55% of total transaction volumes and 56% of all newly launched residential units - land saturation and limited affordability in the city's core residential locations have pushed development toward peripheral areas. Dubai's prime residential market continues to perform well, underpinned by Dubai's sustained appeal for HNWIs. Demand was driven by the strong quality of life proposition, a low tax environment, easy business set up costs and the strength of the Golden Visa programme. Over 1,300 units were transacted at values exceeding the AED 10 million mark in Q1 2025 — marking a 31% y-o-y increase. Contrary to the wider market, villas dominated prime transactions with 73% of market share, recording a 52% y-o-y rise and a 4% q-o-q uptick. According to Andrew Cummings, Head of Residential Agency, Demand across the prime residential segment in Dubai has not simply sustained but strengthened. Amid tariff wars, geopolitical uncertainties and unpredictable tax environments, the world's wealthy increasingly recognise Dubai's appeal, and developers are rising to the occasion. Villas in coveted locations, space, and privacy are the preferred choice but supply remains restricted for the time being. Looking ahead, the outlook for Dubai's residential sector remains optimistic. Savills anticipates that amid global macroeconomic and political uncertainties, the emirate's political stability, competitive regulatory landscape, and business friendly ecosystem are expected to support ongoing population and investment inflows. The development pipeline is however significant and necessitates a balanced approach to supply and demand. Read the complete findings of the report here: Dubai Residential MIM - Q1 2025 Report News Source: Savill
The National
03-05-2025
- Business
- The National
Ras Al Khaimah's residential inventory expected to double by 2030
The residential stock in Ras Al Khaimah is forecast to double by the end of 2030 with more than 11,000 units scheduled for completion as the emirate experiences rapid growth across its tourism and real estate sectors, according to global real estate consultancy Savills. The projection is based on supply anticipated from property launches up to the end of 2024. The growth in tourism and property sales is being driven by rising visitor numbers, new residential project launches and ongoing investment in high-profile projects such as the Wynn Al Marjan Island, the UAE's first integrated resort to be granted a commercial gaming operator's licence, Savills said in a report. The UAE's first gaming resort is expected to boost visits to Ras Al Khaimah and attract travellers until now unaware of the emirate's offerings. The $5.1 billion Wynn Al Marjan Island resort in Ras Al Khaimah secured the country's first gaming licence from UAE authorities last year. Gambling remains prohibited in the Emirates, as it is across the Gulf, but the UAE set up the General Commercial Gaming Regulatory Authority to oversee and supervise commercial 'gaming activities'. These include lotteries, internet gaming, sports betting and integrated gaming centres or resorts. 'There is growing demand for premium residential offerings in RAK,' said Andrew Cummings, head of residential agency at Savills Middle East. 'Branded residences now make up 32 per cent of anticipated supply on Al Marjan Island, reflecting buyer appetite for well-located, lifestyle-led investments.' About 40 per cent of all new developments coming up in the emirate are branded residences, The RAK Investment Pulse report by Stirling Hospitality Advisors found. Wynn Al Marjan Island, scheduled to open in 2027, will have 1,530 rooms, 22 restaurants, a nightclub, salon, spa, designer boutiques, an events centre, several pools and a marina. 'When you think about Wynn, it is arguably one of the best luxury integrated resorts in the world. And to have that type of brand coming to a destination like ours is something that I think will end up being a great new contributor to the tourism ecosystem,' Raki Phillips, chief executive of Ras Al Khaimah Tourism Development Authority, told The National on the sidelines of the Arabian Travel Market in Dubai. Ras Al Khaimah is preparing for an influx of employees to run the multibillion dollar developments springing up in the emirate. The hospitality sector is expected to create more than 25,000 jobs by 2030, according to data from Stirling Hospitality Advisors consultancy. Off-plan sales dominated the Ras Al Khaimah market in 2024 and communities such as Al Marjan Island, Mina Al Arab, and Al Hamra have recorded an upwards trend in capital values and rents since 2022, coinciding with the Wynn announcement, the Savills report said. Sales transaction values were worth more than Dh11 billion ($2.99 billion) in 2024. Savills attributed this demand for real estate to the increase in visitor numbers. Ras Al Khaimah welcomed 1.28 million tourists in 2024, a 5.1 per cent annual increase, and aims to boost that figure to 3.5 million by 2030. Ras Al Khaimah International Airport recorded 661,765 arrivals last year, up 28 per cent annually, with that number estimated to exceed two million by the end of the decade. The emirate is also expanding its hospitality portfolio, which stood at about 55 hotels and resorts, with 8,211 rooms, as of March. The number of rooms in the emirate is set to double in the next few years, with more than 7,500 rooms added. The emirate aims to boost tourism's contribution to the economy to a third by 2035 and position itself as one of the top 10 fastest-growing global destinations. The strategy is expected to create many jobs in the industry, with the Wynn resort alone forecast to employ about 7,000 people. 'The arrival of Wynn Al Marjan will significantly benefit the entire emirate, becoming a strong pillar of the broader destination strategy,' Alison Grinnell, chief executive of RAKHH, told The National. 'The integrated resort will create extensive job opportunities and increase demand for hotel keys.' While reliant on Dubai for luxury and lifestyle amenities, RAK is quickly building its own offering. 'RAK's evolution is now beyond tourism alone,' said Rachael Kennerley, head of research at Savills Middle East. 'We're seeing the pieces come together, infrastructure, education, entertainment, and residential development, which together make a compelling case for long-term investment and growth.'
Arabian Business
01-05-2025
- Business
- Arabian Business
Ras Al Khaimah property market set to double by 2030 amid tourism boom
Ras Al Khaimah's residential property stock is on track to double by the end of 2030, with more than 11,000 new units scheduled for completion, according to a report by Savills. The emirate has recorded over AED11 billion in sales transaction values in 2024, with significant momentum in the market since the pandemic. Off-plan sales have dominated transactions, while communities such as Al Marjan Island, Mina Al Arab, and Al Hamra have experienced increases in capital values and rents since 2022. Gaming revenue could generate AED20 billion as RAK transforms into luxury destination 'There is a growing demand for premium residential offerings in RAK. Branded resi dences now make up 32 per cent of the anticipated supply on Al Marjan Island, reflecting buyer appetite for well-located, lifestyle-led investments,' Andrew Cummings, Head of Residential Agency at Savills Middle East said. The report highlights the Sunshine Bay development on Al Marjan Island as a prime example of market momentum. Launched in late 2024 with Savills as master agents, all 240 units sold within three months, achieving average prices exceeding AED2,200 per sq ft. British investors represented more than 40 per cent of buyers among the 37 nationalities who purchased units. Savills is set to launch the Anantara Mina Ras Al Khaimah Residences in April 2025, featuring 84 units including luxury suites, apartments and duplex sky villas. Prices will start from AED2.2 million, with a 60/40 payment plan and handover expected in Q3 2028. The property market expansion coincides with growth in tourism. Ras Al Khaimah welcomed 1.28 million tourists in 2024, representing a 5.1 per cent increase compared to 2023. The visitor mix was evenly split between international and domestic tourists, with 661,000 air arrivals marking a 28 per cent year-on-year increase. Tourism in the emirate has shown consistent growth since 2020, supported by beach resorts, desert landscapes, and activities around Jebel Jais, the UAE's highest peak. Wynn Al Marjan Island to drive record property sales in Ras Al Khaimah A major catalyst for growth is the development of Wynn Al Marjan Island, the UAE's first integrated resort with a commercial gaming operator's licence. The project, set to open in 2027, will span 62 hectares on Al Marjan Island and feature 1,542 rooms and suites, 225,000 sq ft of gaming space, 15,000 sq m of retail, and entertainment facilities. The potential economic impact is substantial, with analysts noting that if UAE gaming revenue reaches 1.6 per cent of GDP – comparable to Singapore – it could generate more than AED 20 billion in revenue. While historically dependent on Dubai for luxury amenities, Ras Al Khaimah is developing its own offerings. These include the Ritz-Carlton Al Wadi's Zuma winter pop-up and improved education options. In the 2023/24 academic year, seven schools received a 'good' rating from the Ministry of Education, up from three the previous year. The British School Al Hamra became the only school in the Northern Emirates to achieve a 'very good' rating. 'RAK's evolution is now beyond tourism alone. We're seeing the pieces come together, infrastructure, education, entertainment, and residential development, which together make a compelling case for long-term investment and growth,' Rachael Kennerley, Head of Research at Savills Middle East added.
