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Khaleej Times
a day ago
- Business
- Khaleej Times
Dubai's property market sets new sales record in May
Dubai's real estate market continued to witness unprecedented growth, smashing records with Dh66.8 billion in sales in May 2025, a 49.9 per cent surge from the previous year, according to fäm Properties. This blockbuster performance, propelled by strong demand and global investor confidence, underscores Dubai's status as a magnet for wealth and a destination of stability in a volatile world. Despite whispers of a potential price correction, the market's fundamentals remain rock-solid, with an undersupply of office space and a steady influx of high-net-worth individuals driving sustained growth. The May figures, reported by DXBinteract, reveal 18,693 transactions, making it the second-highest month for sales volume on record. This marks a dramatic climb from prior years: Dh2.3 billion from 1,400 transactions in 2020, Dh11.1 billion from 4,400 in 2021, Dh18.3 billion from 6,600 in 2022, Dh33.6 billion from 11,600 in 2023, and Dh46.4 billion from 17,600 in 2024. Last month's crown jewel was a luxury villa on Palm Jumeirah, sold for Dh300 million ($81.7 million), alongside a Jumeirah Residences Asora Bay apartment fetching Dh164 million ($44.7 million). High-value properties shone, with 14 per cent of sales exceeding Dh5 million ($1.4 million), while 30 per cent fell in the Dh1-2 million ($272,000-545,000) range and 26 per cent below Dh1 million ($272,000). Firas Al Msaddi, CEO of fäm Properties, dismissed concerns raised by a Fitch Ratings forecast of a 15 per cent residential price correction, emphasising market maturity over weakness. 'A slowdown in growth isn't a correction,' he said. 'Dubai's demand base is strong, and absorption will catch up.' Approximately 363,000 residential units are slated for delivery over the next five years, but only 12,000 are near completion (80-99 per cent progress), with 270,000 units at early stages (0-20 per cent). Completed project deliveries in 2024 dropped 23 per cent from 2023, dispelling fears of oversupply. However, localised pressure may emerge in areas like Jumeirah Village Circle, expecting 20,000 units in the coming years, potentially causing temporary price adjustments. In contrast, Dubai's office market faces a stark undersupply. 'Quality commercial space is extremely limited, with strong demand and minimal new inventory in prime business zones,' Al Msaddi noted. This scarcity is driving value appreciation, with no price correction in sight. Developer first sales dominated, accounting for 66 per cent of transaction volume and 67 per cent of value, far outpacing resales. DXBinteract data shows Dubai gained 212 per cent more millionaires over the past decade, while London lost 45 per cent. 'Dubai is a secure investment environment where wealth is preserved and grown,' Al Msaddi said. Property Finder data underscores this, with the US leading international search traffic, followed by the UK and India, signaling a shift in global interest. Despite challenges like inflation and geopolitical volatility, investor confidence remains unshaken, driven by Dubai's lifestyle allure and economic stability.
Mid East Info
3 days ago
- Business
- Mid East Info
Dubai Real Estate hits new monthly sales peak of AED66.8 Billion in May - Middle East Business News and Information
Demand base remains strong, market is evolving, while commercial sector faces undersupply – Firas Al Msaadi Dubai, UAE: The Dubai real estate market set a new all-time monthly sales record of AED 66.8 billion in May, a 49.9% increase in value on the same month last year. A market update issued today by fäm Properties reveals that last month's total of 18,693 transactions also made it the second best-selling month on record in terms of volume. The company's CEO, Firas Al Msaddi, says the data from DXBinteract underlines the strength and stability of a market which is evolving, without any broad threat of oversupply in the residential sector, but now facing an undersupply of office space. In response to a recent Fitch Ratings forecast for a 15% correction in Dubai residential property prices, Al Msaddi said: 'While growth has slowed, that's not the same as a correction. A slowdown in growth is a sign of market maturity, not market weakness. 'Approximately 363,000 residential units are expected to be delivered in Dubai over the next five years. However, over 270,000 of those are still at early construction stages, with only 0–20% progress as of today.' He states that just 12,000 units are close to completion (80–99% progress), dispelling any notion of a market-wide oversupply. Additionally, completed project deliveries in 2024 are down 23% compared to 2023, showing the city is not facing a glut of ready units. 'In specific segments, there may be temporary price adjustments,' said Al Msaadi. 'For example, Jumeirah Village Circle is expected to receive around 20,000 new units over the coming 4 to 5 years. 'This concentrated delivery volume may place short-term pressure on pricing in that area, but this is not reflective of the broader market. Even if a correction occurs in pockets of the residential sector, it's temporary. Dubai's demand base is strong, and absorption will catch up.' Meanwhile, Dubai is facing an undersupply of office space. 'Quality commercial space remains extremely limited, with strong demand and minimal new inventory, especially in prime business zones,' says Al Msaddi. 'As a result, no price correction is expected in the office segment, which continues to see firm value appreciation.' Dubai property sales in May have soared in value over the last five years – from AED2.3 billion (1,400 transactions) in 2020, AED11.1 billion (4,400) in 2021, AED18.3 billion (6,600) in 2022, AED33.6 billion (11,600) in 2023 and AED46.4 billion (17,600) in 2024. The most expensive individual property sold last month was a luxury villa at Palm Jumeirah which fetched AED300 million. The most expensive apartment sold during the month went for AED164 million at Jumeirah Residences Asora Bay. The Dubai real estate market is supported not only by construction dynamics, but by global migration patterns of high-net-worth individuals. As per DXBinteract's investor profiling and international market comparisons, London lost 45% of its millionaires over the past decade, while Dubai gained 212% during the same period. 'This contrast reflects a global shift in investor confidence,' says Al Msaddi 'Dubai has become a magnet for global capital, not just as a lifestyle destination, but as a secure investment environment where wealth is preserved and grown. It's where millionaires come to live, and more importantly, where they choose to invest.' With properties worth more than AED5 million accounting for 14% of total sales last month, 30% came in the AED1-2 million range, 26% below AED1 million, 18% between AED2-3 million and 12% between AED3-5 million. Overall, first sales from developers far exceeded those of resales – 66% over 34% in terms of volume and 67% over 33% in overall value.
Arabian Business
4 days ago
- Business
- Arabian Business
Dubai real estate sector sets record $18.2bn sales in single month with $82m Palm Jumeirah villa leading spree
The Dubai real estate market set a new all-time monthly sales record of AED66.8bn ($18.2bn) in May, a 49.9 per cent increase in value on the same month last year, according to a market update issued by fäm Properties. The data reveals that last month's total of 18,693 transactions also made it the second best-selling month on record in terms of volume. Fäm Properties CEO Firas Al Msaddi said the data from DXBinteract underlines the strength and stability of a market which is evolving, without any broad threat of oversupply in the residential sector, but now facing an undersupply of office space. Dubai real estate May 2025 In response to a recent Fitch Ratings forecast for a 15 per cent correction in Dubai residential property prices, Al Msaddi said: 'While growth has slowed, that's not the same as a correction. A slowdown in growth is a sign of market maturity, not market weakness. 'Approximately 363,000 residential units are expected to be delivered in Dubai over the next five years. However, over 270,000 of those are still at early construction stages, with only 0–20 per cent progress as of today.' He said that just 12,000 units are close to completion (80–99 per cent progress), dispelling any notion of a market-wide oversupply. Additionally, completed project deliveries in 2024 are down 23 per cent compared to 2023, showing the city is not facing a glut of ready units. Al Msaadi said: 'In specific segments, there may be temporary price adjustments. For example, Jumeirah Village Circle is expected to receive around 20,000 new units over the coming four to five years. 'This concentrated delivery volume may place short-term pressure on pricing in that area, but this is not reflective of the broader market. Even if a correction occurs in pockets of the residential sector, it's temporary. Dubai's demand base is strong, and absorption will catch up.' Meanwhile, Dubai is facing an undersupply of office space. Al Msaadi said: 'Quality commercial space remains extremely limited, with strong demand and minimal new inventory, especially in prime business zones. As a result, no price correction is expected in the office segment, which continues to see firm value appreciation.' Dubai property sales in May have soared in value over the last five years: 2020: AED2.3bn ($626m) from 1,400 transactions 2021: AED11.1bn ($3bn) from 4,400 transactions 2022: AED18.3bn ($5bn) from 6,600 transactions 2023: AED33.6bn ($9.1bn) from 11,600 transactions 2024: AED46.4bn ($12.6bn) from 17,600 transactions 2024: AED66.8bn ($18.2bn) from 18,693 transactions The most expensive individual property sold last month was a luxury villa at Palm Jumeirah which fetched AED300m ($81.7m). The most expensive apartment sold during the month went for AED164m ($44.7m) at Jumeirah Residences Asora Bay. The Dubai real estate market is supported not only by construction dynamics, but by global migration patterns of high-net-worth individuals. As per DXBinteract's investor profiling and international market comparisons, London lost 45 per cent of its millionaires over the past decade, while Dubai gained 212 per cent during the same period. Al Msaddi said: 'This contrast reflects a global shift in investor confidence. Dubai has become a magnet for global capital, not just as a lifestyle destination, but as a secure investment environment where wealth is preserved and grown. 'It's where millionaires come to live, and more importantly, where they choose to invest.' With properties worth more than AED5m ($1.4m) accounting for 14 per cent of total sales last month, 30 per cent came in the AED1-2m ($272,000-545,000) range, 26 per cent below AED1m ($272,000), 18 per cent between AED2-3m ($545,0000-817,000) and 12 per cent between AED3-5m ($817-000-1.4m). Overall, first sales from developers far exceeded those of resales – 66 per cent over 34 per cent in terms of volume and 67 per cent over 33 per cent in overall value.
Khaleej Times
20-05-2025
- Business
- Khaleej Times
AI fuels Dubai's property boom; draws millennial buyers
Dubai's property market, long an epitome of architectural marvels and reimagined luxury, is undergoing a seismic shift, not through towering skyscrapers or sprawling waterfront estates, but through the quiet power of Artificial Intelligence (AI). From chatbots that serve as tireless virtual agents to sophisticated platforms forecasting rental yields and capital growth, AI is revolutionising how properties are bought, sold, and invested in across the emirate. This technological wave is ushering in a generational transformation, drawing a younger, tech-savvy cohort into the heart of Dubai's real estate scene, as revealed by compelling new data. A recent market report unveiled by fäm Properties paints a vivid picture of this change. The average age of property buyers has plummeted over the past eight years. In the off-plan sector, it dropped from 54 in 2017 to 44 in 2025, while in the ready or re-sale market, it fell from 53 to 42. This is not just a statistical blip — it is a sign of a broader demographic pivot. The 36-45 age group now dominates, accounting for 40 per cent of off-plan sales and 44 per cent of ready and re-sale transactions in 2025. Even more striking is the surge among younger buyers: the 21-25 age bracket snapped up 38.6 per cent more off-plan properties and 33.3 per cent more ready or re-sale properties compared to last year. Meanwhile, the 26-30 age group boosted their purchases in the ready market by 31.9 per cent. At the core of this shift is AI-powered technology, exemplified by platforms like DXBinteract, a leading source of market intelligence. These tools track buyer preferences, monitor market trends, and deliver data-driven insights, empowering investors, buyers, and agents to make swift, informed decisions. For younger buyers, accustomed to digital fluency, this transparency is a game-changer. 'In the past, the market leaned on older investors who trusted their gut and experience,' said Firas Al Msaddi, CEO of fäm Properties. 'Now, AI and digital tools are leveling the playing field, educating younger buyers and making the market more accessible. While human judgment remains vital in this complex landscape, AI's role is only set to expand as the technology evolves.' The data underscores this trend. In 2025, the 41-45 age group leads off-plan sales, capturing 21 per cent of transactions, with 36-40-year-olds close behind at 19 per cent. The ready or re-sale market mirrors this pattern, with 36-40-year-olds driving 23 per cent of deals and the 41-45 segment contributing 21 per cent. Yet, it is the younger cohorts posting the most dramatic year-on-year gains, signaling a market increasingly shaped by millennial and Gen Z technological and demographic evolution tooj center stage at the recent Game Changers 2.0 real estate summit, at Dubai's Coca-Cola Arena. Tech visionary Mo Gawdat, former chief business officer at Google [X], delivered a keynote address, joined by Al Msaddi and Dr. Mahmood AlBurai, senior director of Real Estate Policies and Innovation at Dubai Land Department. The event drew industry leaders, developers, and tech innovators eager to explore AI's impact on real estate. Gawdat's insights highlighted how big data and digital innovation are not just tools but catalysts for a new era in property investment. As realty experts argue, Dubai's property market has always thrived on bold moves, but AI is proving to be its most transformative force yet. By arming younger buyers with unprecedented access to information and predictive analytics, it is dismantling barriers and rewriting the rules of engagement. While the human touch still guides complex decisions, the rise of AI signals a future where data reigns supreme, and a new generation of investors is ready to claim its stake in Dubai's glittering skyline. As the city continues to evolve, this fusion of technology and ambition ensures its property market remains a global pacesetter. issacjohn@
Mid East Info
13-05-2025
- Business
- Mid East Info
AI guides new generation of Dubai property buyers - Middle East Business News and Information
Market reports shows AI-driven tools attracting tech-savvy investors ahead of sold-out real estate summit Dubai, UAE: Dubai's buoyant real estate market is witnessing a generational shift, with AI playing a key part in attracting a new wave of younger buyers. A market report released by fäm Properties today reveals a steep drop in the average age of buyers over the last eight years – from 54 in 2017 to 44 in 2025 in the off-plan sector, and from 53 to 42 in the ready or re-sale market. AVERAGE AGE OF DUBAI REAL ESTATE BUYERS IN RECENT YEARS Year Off-plan Ready/re-sale 2017 54 53 2021 46 45 2022 45 45 2023 44 44 2024 44 42 2025 to date 44 42 The shift towards younger buyers is further underlined by real estate transactions so far in 2025, with 36-45-year-olds accounting for 40% of off plan sales and 44% ready and re-sale transactions. Meanwhile, the 21-25 age group bought 38.6% and 33.3% more property respectively in the two sectors compared with last year. The data is from AI-powered platform DXBinteract, a leading source of market intelligence and a symbol of how advanced technology is attracting younger buyers to the Dubai property market, providing insights and data to support their decision-making. AI technology tracks what buyers are searching for, what matters to them most, and how market patterns are changing, helping investors and buyers, as well as agents, make faster and better decisions. 'In the past, the market was dominated by older investors who relied on experience to make their investments,' said Firas Al Msaddi, CEO of fäm Properties. 'But AI and digital tools are making the market more transparent, and educating tech-savvy younger buyers. 'It's too early yet to rely on AI alone to decide where to invest, and human judgement is still important in a complex real estate market. But AI's role will grow as the tech develops.' The impact of AI, big data, and digital innovation on the real estate industry will be highlighted by t ech visionary Mo Gawdat, former Chief Business Officer at Google [X], when he delivers the keynote at the sold-out Game Changers 2.0 real estate summit in Dubai on Friday night. The event is a sell-out, with VIP tickets going for up to AED30,000. Gawdat will share the stage at the Coca Cola Arena with Al Msaddi and Dr. Mahmood AlBurai, Dubai Land Department's Senior Director Real Estate policies and innovation, to address an audience of industry professionals, developers, and tech leaders. So far in 2025, the 41-45 age group have accounted for the biggest share of total off-plan sales in Dubai – 21% – closely followed by 36 to 40-year-olds at 19%. DUBAI PROPERTY SALES BY AGE GROUP TO DATE IN 2025 Off-plan Ready/ Re-sale Sales share Age Deals Change vs 2024 Sales share Age Deals Change vs 2024 21% 41-45 8,365 +2.1% 23% 36-40 8,611 +9.2% 19% 36-40 7,433 -5.1% 21% 41-45 7,886 -2% 17% 46-50 6,572 -4.5% 16% 31-35 5,927 +9.8% 13% 31-35 4,999 -1.1% 15% 46-50 5,811 -2.4% 12% 51-55 4,852 -5.4% 10% 51-55 3,685 -4.4% 8% 56-60 3,344 -1% 7% 26-30 2,810 +31.9% 7% 26-30 2,651 +4% 6% 56-50 2,438 -8% 3% 21-25 1,095 +38.6% 2% 21-25 789 +33.3% The ready or re-sale sector shows a similar pattern, with the 36-40 age group accounting for 23% of all transactions, followed by the 41-45 segment at 21%. However, the younger age groups have recorded by far the biggest year-on-year increases so far, including 26-30-year-olds buying 31.9% more property in the ready or re-sale market.
