Latest news with #Asico
Khaleej Times
2 days ago
- Business
- Khaleej Times
Dubai realty pivots to long-term stability as market dynamics shifts
Dubai's real estate market is entering a pivotal stabilisation phase in 2025, signalling a maturing and sustainable investment landscape. After a remarkable surge that saw residential property prices climb by approximately 60 per cent from 2022 to early 2025, driven by strong international demand, the market is now transitioning towards equilibrium. This shift, as outlined by Asico, a leading Dubai-based real estate brokerage and developer, reflects a healthy evolution, offering investors a more predictable and strategic environment. As of January 2025, the average price per square foot in Dubai's residential market stood at Dh1,484, marking a modest 0.57 per cent month-on-month decline. This subtle dip indicates a cooling from the frenetic price escalations of recent years, suggesting a market recalibrating for long-term stability. Despite this adjustment, transaction activity remains vigorous. In February 2025, Dubai recorded a 32 per cent increase in transaction volume and a 37 per cent rise in value compared to February 2024, totalling over Dh50 billion. This resilience underscores the emirate's enduring appeal as a global real estate hub. A notable trend reshaping the market is the growing demand for mid-market and affordable housing. In 2024, two out of five ready home sales were valued at less than Dh1 million, a clear departure from the dominance of luxury properties. This broadening appeal reflects a more inclusive market, catering to a diverse buyer base and fostering sustainable growth. High-net-worth individuals continue to gravitate towards premium developments in areas like Palm Jumeirah and Downtown Dubai, where properties often exceed Dh5 million, but the rise of mid-tier options signals a market maturing beyond speculative frenzy. The off-plan segment remains a cornerstone of Dubai's real estate dynamism, with a 38 per cent increase in transaction volume and a 60 per cent surge in value year-over-year in February 2025. Prime locations such as Dubai Creek Harbour, Mohammed Bin Rashid City, and Dubai Hills lead this charge, attracting investors with their blend of modern infrastructure and strategic positioning. Off-plan properties, often priced 10-20 per cent below ready homes, continue to entice buyers seeking capital appreciation and rental yields, which average 6-8 per cent annually in key areas, according to industry data. On the supply side, developers are proactively addressing demand. In response to robust market activity, construction schedules are being accelerated, with handovers brought forward by three to six months. This agility aims to prevent potential shortages and maintain market balance. However, ratings agency Fitch has cautioned of an impending price correction, projecting a double-digit decline in the second half of 2025 and into 2026. This forecast aligns with a planned delivery of 210,000 units in 2025 and 2026, nearly double the volume of the previous three years. Fitch estimates this supply surge could depress prices by up to 15 per cent, a sharp pivot from the post-pandemic boom. Wail Abualhamail, director of Real Estate at Asico, views this stabilisation as a positive development. 'The current phase reflects a maturing market, shifting from speculative buying to strategic, long-term investments,' he said. 'This evolution signals investor confidence, enhanced regulation, and a sustainable future for Dubai's real estate sector.' Property market experts said the stabilisation marks a new chapter for Dubai's real estate sector, one defined by resilience, diversity, and strategic growth. 'As the market matures, it continues to affirm its position as a global leader, offering investors a stable yet dynamic platform for long-term success,' a spokesman of a Dubai realty brokerage firm said. Asico's insights highlight a market where quality, thoughtful planning, and prime locations are becoming the primary drivers of returns, moving away from short-term speculation. The Dubai government's strategic initiatives further bolster this outlook. The Dubai Economic Agenda (D33), targeting a doubling of the emirate's economy by 2033, emphasises real estate as a key growth driver. Policies like the Golden Visa programme, which grants long-term residency to property investors, and 100 per cent foreign ownership in select sectors have cemented Dubai's status as a global investment destination. In 2024, the emirate attracted over Dh 300 billion in real estate investments, with 40 per cent from foreign buyers, according to Dubai Land Department data. As Dubai's property market stabilises, investors face a landscape ripe with opportunity. The focus on mid-market properties broadens investment avenues, while sustained demand underscores the sector's long-term strength. For buyers, this phase offers a chance to make informed decisions in a more predictable environment, prioritising quality and location over speculative gains.
Arabian Business
3 days ago
- Business
- Arabian Business
Dubai real estate market stabilising; investors confident in long-term growth
The Dubai real estate market is entering a healthy 'stabilisation phase' and investors are confident in long-term projects, according to brokerage and developer Asico. Following a period of remarkable growth where residential property prices surged by approximately 60 per cent between 2022 and early 2025, driven by strong international investor interest, the market is now entering a phase of stabilisation in 2025, said Asico. This transition indicates a move towards a more balanced and sustainable trajectory. Dubai real estate stabilisation phase Several key indicators point towards this stabilisation: Price adjustments: As of January 2025, the average price per square foot stood at AED1,484 ($404), reflecting a slight 0.57 per cent month-on-month dip, indicating a cooling from the rapid escalation witnessed in previous years Shift in demand: While luxury properties continue to attract interest, there's a noticeable shift towards mid-market and affordable housing. In 2024, two out of five ready home sales were valued at less than AED1m ($272,000), highlighting a broader market appeal and a move towards more sustainable growth Supply dynamics: Developers are responding to the evolving market by accelerating construction schedules, aiming to bring handovers forward by three to six months. This proactive approach is designed to meet the current demand and prevent potential shortages, contributing to market equilibrium Wail Abualhamail, Director of Real Estate at Asico, said: 'The current phase of stabilisation reflects the natural progression of a maturing market. We are seeing a shift from speculative buying towards more strategic, long-term investments. At Asico, we believe this evolution is a healthy sign, indicating investor confidence, improved regulation, and a more sustainable future for Dubai's real estate sector.' Despite the stabilisation, Dubai's real estate market continues to exhibit robust performance. In February 2025, the market recorded a 32 per cent increase in transaction volume and a 37 per cent rise in value compared to the same period in 2024, totalling more than AED50bn ($13.6bn). The off-plan market remains a significant driver of this activity, with a 38 per cent increase in volume and a 60 per cent increase in value year-over-year. Key areas such as Dubai Creek Harbour, Mohammed Bin Rashid City, and Dubai Hills have been particularly popular for off-plan investments. The Dubai government's ongoing strategic initiatives are also playing a crucial role in bolstering the real estate sector. The Dubai Economic Agenda (D33), which aims to double the emirate's economy by 2033, specifically focuses on enhancing the contribution of the real estate sector. Furthermore, policies such as the Golden Visa programme and the provision for 100 per cent foreign ownership in certain sectors have further strengthened investor confidence in the market. Asico said: 'As the market enters this phase of stabilisation, investors are presented with opportunities to make informed decisions in a more predictable environment'. The increasing focus on mid-market properties opens avenues for a broader range of investments, while the sustained overall demand underscores the market's long-term strength. According to Asico, this stabilisation period signifies a maturing of Dubai's property sector, where factors such as quality, thoughtful planning, and strategic location are expected to be the primary drivers of long-term returns, moving away from reliance on short-term speculation.
Zawya
3 days ago
- Business
- Zawya
Dubai's property market enters stabilization phase in 2025, signaling a maturing investment landscape
Dubai, UAE – Asico, a prominent real estate brokerage and developer in Dubai, announces a significant shift in Dubai's property market dynamics. Following a period of remarkable growth where residential property prices surged by approximately 60% between 2022 and early 2025, driven by strong international investor interest, the market is now entering a phase of stabilization in 2025. This transition indicates a move towards a more balanced and sustainable trajectory. Several key indicators point towards this stabilization: Price Adjustments: As of January 2025, the average price per square foot stood at AED 1,484, reflecting a slight 0.57% month-on-month dip, indicating a cooling from the rapid escalation witnessed in previous years. Shift in Demand: While luxury properties continue to attract interest, there's a noticeable shift towards mid-market and affordable housing. In 2024, two out of five ready home sales were valued at less than AED 1 million, highlighting a broader market appeal and a move towards more sustainable growth. Supply Dynamics: Developers are responding to the evolving market by accelerating construction schedules, aiming to bring handovers forward by 3-6 months. This proactive approach is designed to meet the current demand and prevent potential shortages, contributing to market equilibrium. Wail Abualhamail, Director of Real Estate at Asico, commented on these developments, stating, 'The current phase of stabilization reflects the natural progression of a maturing market. We are seeing a shift from speculative buying towards more strategic, long-term investments. At Asico, we believe this evolution is a healthy sign, indicating investor confidence, improved regulation, and a more sustainable future for Dubai's real estate sector.' Despite the stabilization, Dubai's real estate market continues to exhibit robust performance. In February 2025, the market recorded a 32% increase in transaction volume and a 37% rise in value compared to the same period in 2024, totaling over AED 50 billion. The off-plan market remains a significant driver of this activity, with a 38% increase in volume and a 60% increase in value year-over-year. Key areas such as Dubai Creek Harbour, Mohammed Bin Rashid City, and Dubai Hills have been particularly popular for off-plan investments. The Dubai government's ongoing strategic initiatives are also playing a crucial role in bolstering the real estate sector. The Dubai Economic Agenda (D33), which aims to double the emirate's economy by 2033, specifically focuses on enhancing the contribution of the real estate sector. Furthermore, policies such as the Golden Visa programme and the provision for 100% foreign ownership in certain sectors have further strengthened investor confidence in the market. As the market enters this phase of stabilization, investors are presented with opportunities to make informed decisions in a more predictable environment. The increasing focus on mid-market properties opens avenues for a broader range of investments, while the sustained overall demand underscores the market's long-term strength. According to Asico, this stabilization period signifies a maturing of Dubai's property sector, where factors such as quality, thoughtful planning, and strategic location are expected to be the primary drivers of long-term returns, moving away from reliance on short-term speculation. About Asico Asico is a full-service real estate brokerage and developer based in Dubai, UAE, specializing in sourcing premium listings, facilitating exclusive developer collaborations, and offering turnkey solutions to investors. With an integrated property management division, Asico provides end-to-end services, ensuring seamless experiences for property owners and tenants alike. With a customer-centric approach and deep market expertise, Asico caters to a diverse clientele, from individual homebuyers to institutional investors. About Al Suwaidi Investment Founded in the 1990s, Al Suwaidi Investment is a leading investment firm based in Dubai, UAE, with a diversified portfolio spanning real estate, hospitality, and other sectors. Known for its commitment to excellence and innovation, the company has played a significant role in shaping Dubai's economic landscape. Al Suwaidi Investment's ventures consistently reflect its vision of driving growth, fostering partnerships, and delivering value across industries. For media enquiries, please contact: Sarah Alexandra Morris PR Manager
Zawya
29-01-2025
- Business
- Zawya
Asico secures contract to develop and oversee AED 90mln Sama Al Jaddaf project in Dubai
Dubai, UAE – Asico, a subsidiary of Al Suwaidi Investment, has been awarded the contract to develop the design and supervise the construction of the prestigious Sama Al Jaddaf residential project. The agreement was formalized through a Memorandum of Understanding (MoU) signing with the project owner, Mr. Abdelkarim Al Sayyar, a Saudi businessman renowned for his successful ventures, and Mr. Ahmed Mohd Saif Bukhazmia Al Suwaidi, Chairman of Al Suwaidi Investment. The AED 90 million project is set to rise in Al Jaddaf, a prime location in Dubai, offering a thoughtfully designed residential building comprising a total built-up area of 157,441.04 square feet. Asico will lead the project as the developer, overseeing all aspects of the design and construction to ensure a seamless delivery of the project. Sama Al Jaddaf will feature a ground floor, four parking levels, 12 residential floors, and a rooftop with luxurious amenities. The building will house 108 residential units, consisting of 24 studios, 60 one-bedroom apartments, and 24 two-bedroom apartments. The rooftop will offer an outdoor seating area, a semi-Olympic swimming pool measuring 25 metres by 4 metres, and a fully equipped gym covering 970 square feet. Commenting on the project, Mr Ahmed Mohd Saif Bukhazmia Al Suwaidi, Chairman of Al Suwaidi Investment, said: ' Sama Al Jaddaf represents our unwavering commitment to delivering high-quality residential developments in prime locations. This collaboration with Mr. Abdelkarim Al Sayyar marks another milestone for Al Suwaidi Investment and its subsidiary Asico as we continue to contribute to Dubai's real estate landscape.' Mr Wail Abualhamail, Director of Real Estate at Asico, added: 'We are proud to be entrusted with the management of the design and construction of Sama Al Jaddaf. This project reflects Asico's commitment to combining innovative design with top-tier project management, creating properties that meet the highest standards. Sama Al Jaddaf will enhance the residential appeal of Al Jaddaf, offering a modern lifestyle in a prime location.' The Sama Al Jaddaf project showcases Asico's dedication to advancing urban development while delivering luxurious and sustainable living spaces that align with Dubai's forward-looking vision. -Ends- About Asico Asico is a full-service real estate brokerage and developer based in Dubai, UAE, specializing in sourcing premium listings, facilitating exclusive developer collaborations, and offering turnkey solutions to investors. With an integrated property management division, Asico provides end-to-end services, ensuring seamless experiences for property owners and tenants alike. With a customer-centric approach and deep market expertise, Asico caters to a diverse clientele, from individual homebuyers to institutional investors. About Al Suwaidi Investment Founded in the 1990s, Al Suwaidi Investment is a leading investment firm based in Dubai, UAE, with a diversified portfolio spanning real estate, hospitality, and other sectors. Known for its commitment to excellence and innovation, the company has played a significant role in shaping Dubai's economic landscape. Al Suwaidi Investment's ventures consistently reflect its vision of driving growth, fostering partnerships, and delivering value across industries. For media enquiries, please contact: Sarah Alexandra Morris Business Development Manager
