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Khaleej Times
24-04-2025
- Business
- Khaleej Times
Dubai real estate residential sales up 22.4%, commercial deals rise 18.2% in Q1 2025
Dubai's residential property sales increased by 22.4 per cent year-on-year in the first quarter, with a 29.6 per cent increase in the total value sold, a report showed on Thursday. According to Engel & Völkers Middle East, a leader in premium residential and commercial real estate services, commercial real estate sales increased by18.2 per cent YO, with a 29.5 per cent increase in the total value of transactions. Despite the usual seasonal dip from Q4, Dubai's residential market delivered broad-based growth. Off-plan sales were up 23.9 per cent and secondary transactions rose 20.3 per cent, with continued demand across both ends of the price spectrum. Apartments remained the dominant property type, comprising 76 per cent of all residential transactions. Jumeirah Village Circle retained its lead in both off-plan and resale apartment sales, supported by attractive pricing, strong rental yields, and proximity to major road networks. Secondary market momentum was also evident in Business Bay, Dubai Marina, and Downtown Dubai — key areas sought by investors and end-users alike for their connectivity, proximity to amenities and enduring rental demand. The villa segment was a clear standout for growth, with transactions increasing by 80.6 per cent year-on-year. The surge was primarily led by off-plan activity in emerging, master-planned communities such as The Valley, Emaar South, and Damac Islands. The total transaction value for villas rose by 55.1 per cent, pointing to a growing preference for more affordable, family-oriented housing in newer developments on the fringes of Dubai. In the luxury and ultra-luxury segment, Dubai maintained its momentum. Sales above Dh10 million grew by 29 per cent from Q1 2024, and are now up 185 per cent from Q1 2022. Palm Jumeirah and the rapidly emerging Palm Jebel Ali accounted for 31 per cent of sales over Dh10 million, supported by demand for ultra-luxury, waterfront villas. Noteworthy deals included the Dh425 million sale of the Marble Palace in Emirates Hills and an Dh115 million villa in Palm Jumeirah's EOME community, brokered by Engel & Völkers Private Office Advisor Fadi Alsalem. Dubai continues to establish itself as the world's leading destination for high-net-worth individuals. According to Henley & Partners, the number of resident millionaires has grown by over 100 per cent in the past decade, with the UAE attracting more HNWIs than any other country in 2023 and 2024. Today, Dubai is home to more than 81,000 millionaires, 237 centi-millionaires, and 20 billionaires - a figure that is set to rise as global wealth reallocates toward stable, high-performing destinations. Dubai's rental market also reflected sustained demand, with over 51,000 new residents added in the first quarter alone. While rent increases show signs of stabilising, luxury apartments in Bluewaters (+14.1 per cent) and villas and townhouses in Dubai Hills Estate (+33.8 per cent), and Arabian Ranches (+20.6 per cent) registered significant year-on-year growth. Commercial property The commercial real estate continued its upward trajectory, with office, retail, and mixed-use segments all posting gains. Office sales transactions increased by 40 per cent, and the average price per sq. ft. rose 15 per cent to Dh1,676. Business Bay and JLT remained leading hubs for Grade A office space, recording 315 and 217 sales respectively. Off-plan interest in Capital One helped position Motor City as a leading office investment destination in Q1. Retail sales, meanwhile, rose 6 per cent year-on-year, with concentration in thriving residential and mixed-use communities such as Business Bay, Arjan, and JVC. Leasing activity also accelerated, with a 17.6 per cent quarter-on-quarter increase across the commercial sector. Office rents grew by 23 per cent year-on-year to Dh112 per sq. ft., led by demand in core business districts such as Business Bay, JLT, and Dubai Investments Park. While retail rents remained steady at Dh240 per sq. ft., increasing appetite for Grade A space suggests upward pressure on pricing may emerge in the latter half of the year. 'In the face of global economic uncertainty, Dubai's real estate market continues to show excellent fundamentals, with cross-sector growth and compelling returns for investors,' said Daniel Hadi, CEO of Engel & Völkers Middle East. 'Demand is being fuelled not just by regional wealth and migration, but by strategic policy, infrastructure investment, and the city's global positioning as a future-forward hub for living and business.' Recent infrastructure announcements — including the acceleration of the Etihad Rail project, the rollout of the Dubai Loop system, and strategic road upgrades in central business zones — are expected to further reinforce the city's competitive edge. Major commercial projects announced in Q1 2025 — such as the Dh5 billion redevelopment of Mall of the Emirates also signal strong confidence from Dubai's top developers in the long-term resilience of the city's retail and consumer sectors. As Dubai continues to attract global investors, business leaders, and new residents, Engel & Völkers remains optimistic about the outlook for the remainder of 2025. 'From prime residential to commercial real estate, Dubai is increasingly seen as a safe haven for capital and a high-performance market that rewards long-term vision,' Hadi added.
Express Tribune
05-03-2025
- Business
- Express Tribune
Here's how much a villa costs in Dubai's Jumeira Bay
Listen to article Dubai's Jumeira Bay island has set a new benchmark for luxury real estate, with the sale of a 6-bedroom villa for a staggering Dh330 million. The deal cements the island's reputation as a hotspot for record-breaking property transactions. Spanning 26,895 square feet, the villa sits on one of only three exclusive plots at the tip of the island. It is the sole villa offering uninterrupted views of the Burj Khalifa and the Downtown Dubai skyline, according to a statement from the broker. This sale surpasses the previous record of Dh240.5 million set in June 2024, also facilitated by Dubai Sotheby's International Realty. "Jumeira Bay Island remains the most coveted address in Dubai, with just 128 plots, and its desirability continues to grow," said Regan Faulkner, Associate Director at the brokerage firm. "With uninterrupted views of the Dubai skyline, a prime beachfront position, and total exclusivity, it represents one of the rarest opportunities in the market." The Dubai luxury property market has continued its strong performance into 2025, with another notable sale earlier this year at Emirates Hills, where a home fetched Dh425 million. On the Jumeira Bay transaction, George Azar, CEO and Chairman of Dubai Sotheby's International Realty, remarked, "Dh330 million is more than just a figure, it's a statement. The demand for properties of this calibre signals a shift where provenance and exclusivity hold more value than ever. In this segment, we don't just set records—we shape the market."
Khaleej Times
26-02-2025
- Business
- Khaleej Times
Dubai real estate market posts first monthly dip in two years
Dubai's red-hot real estate market has recorded its first monthly price decline in over two years, signalling a long-anticipated shift toward equilibrium. According to Property Monitor, a leading real estate intelligence firm, average prices fell by 0.57 per cent in January 2025 to Dh1,484 per square foot — the first drop since summer 2022. This cooling follows four consecutive years of unprecedented growth, during which prices surged by over 30 per cent in 2024 alone, smashing records for transactions, launches, and mortgage activity. January 2025 marked the strongest month on record for sales volume, with 14,413 transactions. However, this figure represented a 4.6 per cent month-on-month decline from December 2024, hinting at a moderation in buyer momentum. Notably, the off-plan sector continued to dominate, with 53 new launches adding 12,400 units to the pipeline. With 7,555 transactions, the off-plan market accounted for 52 per cent of sales during January, down 17.7 per cent on December 2024. Title deed sales saw a marked month-on-month increase, rising by 15.7 per cent and accounting for 47.6 per cent of sales. Developers such as Emaar (16.5 per cent market share), Damac (15.8 per cent), and Danube (5.3 per cent) led activity, though off-plan sales dipped 17.7 per cent compared to December. Meanwhile, ready property transactions rose 15.7 per cent, reflecting renewed investor interest in completed assets. The slight price correction underscores growing affordability constraints after years of steep appreciation. Median prices in January stood at Dh1.35 million for apartments, Dh2.61 million for townhouses, and Dh6.92 million for villas. While luxury segments saw eye-popping deals—including a Dh425 million villa in Emirates Hills—entry-level buyers gravitated toward affordable options, such as a Dh175,000 studio in Dubai Production City. Zhann Jochinke, COO of Property Monitor, noted, 'Dubai's market is maturing. After a phase of explosive growth, stakeholders are recalibrating to balance supply with sustainable demand.' Mortgage activity echoed this sentiment: despite tighter Central Bank regulations, loans rose 6.8 per cent month-on-month to 4,134, with stable loan-to-value (LTV) ratios indicating sustained lender confidence. 'While the total number of transactions remains strong, affordability constraints and market maturity are beginning to shape the landscape. With sales volumes and mortgage transactions moderating, Dubai's property sector could be transitioning from a continued phase of rapid growth to a more sustainable trajectory. A careful balance of supply and demand will determine the future of the market in 2025 and beyond,' said Jochinke. January's dip comes on the heels of a historic 2024, when Dubai's property sector defied global headwinds to achieve record-breaking sales (over 150,000 transactions) and price peaks. Analysts argue that January's moderation reflects a natural market cycle rather than a downturn, with developers and regulators now prioritizing long-term stability over unchecked expansion. With 12,400 new units launched in January alone, developers must align future projects with evolving buyer preferences, particularly in mid-market and sustainable housing, market analysts said. Stable LTV ratios and rising loan volumes suggest financing remains accessible, though rate fluctuations could impact sentiment. The polarization between ultra-luxury and budget-friendly segments will likely persist, requiring tailored regulatory and investment strategies. As Dubai's market transitions from 'boom' to 'balance,' 2025 is poised to test its maturity—and its ability to sustain growth without overheating, market pundits said. 'For investors and end-users alike, the era of guaranteed double-digit returns may be fading, but opportunities endure in a market now defined by nuance, diversification, and strategic foresight.'
